23 August 2021
Matter: Ashique Ponnamparambath v. The Federal Bank Ltd.
Order dated: 19 July 2021.
Summary: The suspended director of the corporate debtor, M/s. Platino Classic Motors (Corporate Debtor), had challenged the order of the NCLT, Kochi Bench, admitting the Corporate Debtor into CIRP on the basis of an application filed by a financial creditor. The ground for challenge was that the ‘Term Loan Agreement’ under which the entire loan transaction was based was an inadequately stamped document and is therefore not admissible in evidence.
The NCLAT held that the objections raised were unsustainable. This is because the financial creditor had not only relied upon the Term Loan Agreement but also on the demand promissory note, hypothecation letter regarding depositing of title deed, a certified copy of the bank statement, and many other documents and therefore the debt and default were proved beyond doubt. Accordingly, the appeal was dismissed by the NCLAT.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
al@acuitylaw.co.in
