And now, RBI brings Seri Infrastructure Finance under IBC

RBI, on Friday filed applications for initiation of corporate insolvency resolution process against Srei Infrastructure Finance Limited and Srei Equipment Finance Limited underrelevant sections of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudication Authority) Rules, 2019 at the Kolkata Bench of the National Company Law Tribunal.

As per the FSP Insolvency Rules, an interim moratorium shall commence on and from the date of filing of the application till its admission or rejection. Accordingly, the adjudicating authority shall by order declare moratorium for prohibiting all of the following:

(a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority;

(b) transferring, encumbering, alienating or disposing off by the corporate debtor any of its assets or any legal right or beneficial interest therein;

(c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); and

(d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.

RBI said the supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period.

The provisions of the Insolvency Rules will not also apply to 

(a) transaction as may be notified by the central government in consultation with any financial regulator; and

(b) a surety in a contract of guarantee to a corporate debtor.”