The recent order of the National Company Law Tribunal, Mumbai Bench, dated 31.07.2017 in TCP No.409/(MAH)/2017 in the matter titled as Magicrete Buildings Solutions Pvt Ltd vs Pratibha Industries Ltd, will lead banks and financial institutions into an extreme legal necessity which is almost impossible to perform.
As per Section 9 of the Insolvency and Bankruptcy Code, 2016, the banks are obliged to issue certificate to the operational creditor maintaining accounts with it, confirming that there is no payment of unpaid operational debt by the corporate debtor. The order is pursuant to a request by the counsel for the operational creditor before the NCLT seeking a direction to the bank maintaining the account of the operational creditor to …
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