The recent decision of the Hon’ble National Company Law
Tribunal, Mumbai Bench, in the case concerning Rolta India
Limited (Corporate Debtor herein), wherein it upheld the right
of the Bank of India (Financial Creditor) to classify the Corporate
Debtor’s account as “fraud” during the
pendency of the Corporate Insolvency Resolution Process (CIRP), has
given rise to significant issue regarding its wider implications on
the insolvency framework under the Insolvency and Bankruptcy Code,
2016 (“IBC”).
This decision arose from an application filed by the Resolution
Professional (RP) of Rolta India seeking a restraint against the
Bank of India, which had classified Rolta India’s account as
fraudulent on account of default of Rs….