NCLT dismisses attachment claims for recovery

In a land mark judgement titled as Raman Ispat Vs. PVVNL, NCLT Allahbad Bench has taken positive steps to counter legal impediments to loan recovery proceedings by setting aside property attachment claims of Paschimachal Vidyut Vitran Nigam Ltd./ Operational Creditors for the outstanding dues for supply of power due towards a bankrupt private sector borrower. NCLT held that District Authorities (District Collector and Thehsildar) cannot prevent the sale of land of a bankrupt borrower for its failure to pay outstanding utility bills. The order will indeed help speed up the liquidation process.