The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that any dispute even pending in the arbitration does not in any manner prohibit the financial creditor to take remedy under Section 7 of the code.
It also held that the constitution of a Project Management Committee comprising members of financial creditors and corporate debtor in pursuance of a Settlement Agreement does not absolve the CD from its repayment obligations.
Brief Facts:
The First Amended Debenture Trust Deed was executed on 20.07.2017, followed by the Restated and Amended Debenture Trust Deed on 27.09.2018. A repayment notice was issued by the IDBI when…
