The Madras High Court has held that a pending appeal before the National Company Law Appellate Tribunal (NCLAT) does not restrain a bank from proceeding with the Swiss Challenge auction of stressed assets.
Aban Offshore Limited, a listed public company engaged in offshore drilling operations, had availed multiple credit facilities from PNB. Following persistent defaults, the account was classified as Non‑Performing Asset (NPA) on 2 May 2017, with outstanding dues exceeding ₹ 1,062 crore.
PNB initiated recovery under the SARFAESI Act, issuing notices under Sections 13(2) and 13(4), and later filed an insolvency petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) before the…