AZB & Partners successfully represented Standard Chartered Bank (Singapore) Limited (“SCB/Respondent”) before the NCLAT in an appeal filed by the suspended director (“Appellant”) of RCI Industries & Technologies Ltd. (“RCI”) challenging the initiation of CIRP under the IBC against RCI.
The NCLAT appeal inter alia, questioned the status of SCB as an ‘operational creditor’ for a debt which was assigned in a foreign jurisdiction, by way of an assignment agreement which was unstamped. In this case section 36 of the Indian Stamp Act, 1899 was relied upon for dismissing the appeal and what makes it interesting is that this judgment was passed after the Hon’ble Supreme Court pronounced its judgment in N.N. Global Mercantile Pvt. Ltd. v. Indo Unique Flame Ltd. & Ors.
The NCLAT, in the facts of this case, while dismissing the appeal, held that the Hon’ble Supreme Court in N.N. Global did not consider the aspect of section 36 of the Stamp Act which effectively bars an objection to be raised at a later stage in relation to the stamping of an instrument which has been admitted into evidence by the Court/Tribunal and proceeded to dismiss the appeal.
The AZB team comprised of our Partner Vatsala Rai and Associate Sushrut Garg.