Can defaulting companies take shelter under the ongoing insolvency proceedings to stop creditors from taking away assets provided as security?
Kolkata High Court has allowed a creditor to take away equipment financed by it from the possessions of defaulting steel company, Ramsarup Industries, which has applied under the Insolvency and Bankruptcy Code.
The judgement would bring confidence among lenders and creditors who might be apprehensive about insolvency proceedings.
But ICICI Bank, fearing impediments in recovering money by disposing of assets, has reportedly challenged the acceptance of Ramsarups case by the National Company Law Tribunal (NCLT), which would be taken up tomorrow.
ICICI Bank has faced problem while t…
Read the full article at: http://www.dnaindia.com/business/report-dna-exclusive-creditors-can-take-away-assets-of-cos-moving-nclt-for-insolvency-hc-2511633
