INDIAN OVERSEAS BANK Vs. RCM INFRASTRUCTURE LTD

JUDGEMENT

(1.) This appeal challenges the judgment dtd. 26/3/2021 passed by the National Company Law Appellate Tribunal, Principal Bench, New Delhi (hereinafter referred to as "the NCLAT") in Company Appeal (AT) (Insolvency) No. 736 of 2020, thereby dismissing the appeal filed by the present appellant­Indian Overseas Bank, which was in turn filed challenging the order dtd. 15/7/2020 passed by the National Company Law Tribunal, Hyderabad Bench­1, Hyderabad (hereinafter referred to as "the NCLT") in I.A. No.832 of 2019 in C.P. (IB) No. 601/10/HDB/2018, vide which the learned NCLT had allowed the application filed by the respondent No.2 herein, former Managing Director of the respondent No.1 herein­M/s RCM Infrastructure Ltd. (hereinafter referred to as the "Corporate Debtor") and set aside the sale of the assets of the Corporate Debtor.

(2.) The facts in brief, giving rise to filing of the present appeal, are as under:

(3.) The appellant Bank issued a Demand Notice under Sec. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the "SARFAESI Act"), calling upon the Corporate Debtor and its guarantors to repay the outstanding amount due to the appellant Bank. Since the Corporate Debtor failed to comply with the Demand Notice and repay the outstanding dues, the appellant Bank took symbolic possession of two secured assets mortgaged exclusively with it. The same was done by the appellant Bank in exercise of powers conferred on it under Sec. 13(4) of the SARFAESI Act read with Rule 8 of the Security Interest (Enforcement) Rules, 2002 (hereinafter referred to as the "said Rules"). One of the said properties stood in the name of Corporate Debtor and the other in the name of Corporate Guarantor. An E­auction notice came to be issued on 27/9/2018 by the appellant Bank to recover the public money availed by the Corporate Debtor.