9911796707
TMI Blog2021 (3) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... ant issue as to the role of an Asset Reconstruction Company under the Insolvency and Bankruptcy Code (hereinafter, "IBC"), in the context of the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter 'SARFAESI Act'). 2. Under the IBC, sub clause (d) of Explanation II r/w the Provisos to Explanation 1, under section 29A(j), in effect, does not prohibit an Asset Reconstruction Company from submitting a resolution plan. On the other hand, under Section 10 of the SARFAESI Act, for an Asset Reconstruction Company to conduct any business apart from securitization or assets reconstruction, prior approval of the Reserve Bank of India is required. The said two provisions a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - For the purposes of this section, "financial entity" shall mean the following entities which meet such criteria or conditions as the Central Government may, in consultation with the financial sector regulator, notify in this behalf, namely:- ... (d) an asset reconstruction company registered with the Reserve Bank of India under section 3 of the Securitisation and Reconstruciton of Financial Assets and Enforcement of security Interest Act, 2002 (54 of 2002)"; Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 "10. Other functions of [asset reconstruction company]. - (1) Any [asset reconstruction company] registered under section 3 may - (a) act as an agent for any bank or financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aircel Limited, Dishnet Wireless Limited and Aircel Cellular Limited, before the NCLT. The resolution plan submitted by the Petitioner is stated to have already been approved by the NCLT, vide order dated 9th June, 2020 in CP (IB) No.298/MB.II/2018 and connected applications. The NCLT had, vide the said order, directed the Petitioner to obtain an approval of the Reserve Bank of India. The order of the NCLT reads: "6.6.2. The RA is an asset reconstruction company, having been licensed to act as such by RBI. Hence, RA will require approval of RBI to acquire shares in the corporate applicants. The RA submits that it shall apply for such approval after the Resolution Plan is approved by this Adjudicating Authority." The Reserve Bank India de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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