In a recent ruling, the National Company Law Tribunal (NCLT) Kochi Bench has directed the reclassification of Yes Bank’s ₹4.92 crore loan to Roofco Trading Company Private Limited as unsecured financial debt, holding that the mortgage relied upon by the bank was created over the promoters’ personal properties and not the corporate debtor’s assets.
The application was filed by the Resolution Professional of the appellant Roofco Trading Company Private Limited under Section 60(5) of the Insolvency andBankruptcy Code, 2016, seeking correction of the classification recorded during the Corporate Insolvency Resolution Process (CIRP). Yes Bank had originally submitted a total claim of ₹13.92 crore: ₹4.92 crore as…