The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, has held that a suspended director who himself initiated the corporate insolvency resolution process (CIRP) cannot later dispute the financial creditor’s claim on the ground of limitation, thereby dismissing a batch of insolvency appeals.
The appeals were filed by Rakeshkumar Hariram Agarwal, who is the suspended director of the corporate debtor. He challenged orders passed by the Adjudicating Authority wherein the State Bank of India’s application for replacement of the resolution professional was allowed. The corporate debtor itself admitted a default exceeding Rs. 116 crore payable to SBI during the CIRP.
Before the NCLAT,…