IBBI NCLAT Delhi Judgement Dated 03/09/2025 – Statutory right of Financial Creditor under section. 7 of IBC cannot be curtailed due to pending OTS proposal 

Case of Rajendra Kumar Pahwa vs Canara Bank, NCLAT Delhi, Judgement Dated 3rdSeptember 2025. The appellate tribunal eld that the statutory right of a Financial Creditor bestowed under section 7 of the IBC cannot be curtailed to any ‘Inter-Creditor Agreement’ or Consortium agreement executed between the lender banks, as the same was only for regulating the inter-se affairs of the consortium and the OTS proposal cannot be claimed by a borrower as a matter of right. 

(Link: NCLAT Delhi Judgement Dated 03/09/2025)

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