NCLT Admits Standard Chartered Bank's Plea Of Four Care Hospital
The Mumbai branch of the National Company Law Tribunal (NCLT) has accepted Four Care Hospital's application for the Corporate Insolvency Resolution Process (CIRP). Standard Chartered Bank had filed this request. The tribunal has appointed Rajan Garg as its resolution professional.
Initially, the company's founder had taken out a loan from Dewan Housing Finance (DHFL). Standard Chartered Bank obtained this loan later.
A division bench of judicial member Kuldip Kumar Kareer and technical member Anil Raj Chellan stated that the petitioner was able to prove that the debtor had been granted a loan and that the petition had been filed within the period of limitation. As a result, the Petition deserves to be admitted under Section 7 of the Code (IBC). This ruling was made on 22 January based on the facts, circumstances and documents provided by the financial creditor.
The case involves a company's promoter who had previously taken out a Rs 5.31 crore loan against property from DHFL. Later, the loan was taken over by the local subsidiary of the British bank in 2019. The company defaulted in April 2022, and its lender, Standard Chartered Bank, approached the tribunal last year.
The company had argued in court, through its lawyer, that the lender had failed to prove a 'date of default', which is required under Section 7(5) of the Code along with Regulation 2(D) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. However, the lender argued that the debtor company did not deny the loan agreement's execution and the loan's availing, along with the creation of security in favour of the financial creditor.
