The National Company Law Tribunal, NCLT Bengaluru bench in the case Invoice Discounters of BNH Infra Projects (India) Private Limited vs BNH Infra Projects (India) Private Limited observed wherein the bench comprising of Judicial Member, Justice (Retd.) T. Krishnavalli and the Technical Member, Shri Manoj Kumar Dubey while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 and has held that the discounting of invoices of the Corporate Debtor would make the Financiers step into the shoes of the Corporate Debtor and in order to make them Operational Debtors rather than Financial Creditors.
The National Company law Tribunal, NCLT further in the case observed that upon discounting of the invoices, the amount of the Petitioners was deposited in escrow accounts maintained by KredX and this being the amount was disbursed to the Corporate Debtor in lieu of transfer of the right to receive the amount under the invoices in favour of the Petitioners. Therefore, the Tribunal stated that at no point of time was the amount disbursed as a loan to pay the debts of the Corporate Debtor and the petitioner in the case took the invoices at a discounted price and stepped into the shoes of the Corporate Debtor who being an Operational Creditor to
Tata Projects Limited.
The Triibunal also placed Reliance on the National Company Law Appellate Tribunal, NCLAT judgement in the case Minions Ventures Pvt. Ltd Vs. TDT Copper Ltd, wherein the Tribunal held that by discounting the invoices of the seller, the Financiers enter into the shoes of the seller to become Operational Creditors.
Accordingly, the court dismissed the Tribunal petition.
The counsel, Adv. Arjun K Perikal appeared
for the Applicant
The counsel, Adv. K.S Ponnappa represented
the respondent.