Judgements
- Dena Bank vs. C. Shivakumar Reddy; CA 1650 OF 2020, LL
2021 SC 349
The Supreme court observed that a fresh cause of action can be
initiated under section 7 of IBC, if due of corporate debtor to
financial debtor remain unpaid.
"Judgment and/or decree for money in favour of the
Financial Creditor, passed by the DRT, or any other Tribunal or
Court, or the issuance of a Certificate of Recovery in favour of
the Financial Creditor, would give rise to a fresh cause of action
for the Financial Creditor, to initiate proceedings under Section 7
of the IBC for initiation of the Corporate Insolvency Resolution
Process, within three years from the date of the judgment and/or
decree or within three years from the date of issuance of the
Certificate of Recovery, if the dues of the Corporate Debtor to the
Financial Debtor, under the judgment and/or decree and/or in terms
of the Certificate of Recovery, or any part thereof remained
unpaid."
