A case has been filed by a Bank against a defaulting corporate builder under a tripartite agreement - bank having lent money to the individual borrower for purchase of flat. The Builder having failed to deliver the flat, after receiving the consideration, the Bank had proceeded against the borrower and the builder in DRT and DRT had issued Recovery Certificate.
With the above background, can the Bank (as creditor) now proceed against the corporate builder under IBC.
Will the Recovery Certificate issued by the DRT be a ground for rejection of the application in the NCLT under IBC?
