XYZ Bank Ltd., being a secured creditor, filed an application before the Debt Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 to recover ₹5 crore from Gem Pvt. Ltd. Recover
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2014
XYZ Bank Ltd., being a secured creditor, filed an application before the Debt Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 to recover ₹5 crore from Gem Pvt. Ltd. Recovery certificate was issued by the Tribunal and the recovery officer sold the property of the company mortgaged to the bank in auction, based on the recovery certificate. However, the company was in liquidation and the official liquidator challenged the sale of the property of the company before the company court. The bank has sought your expert opinion in the matter. Substantiate your opinion with reasons and case law, especially on the question of jurisdiction of the company court in the matter.
Topics: Insolvency
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