Disbursement Of Non Fund-Based Facilities Cannot Be Refused By Lenders When Resolution Plan Contains Clause For Disbursement: NCLAT

The NCLAT ruled that the disbursement of non-fund-based facilities cannot be refused if it is included in the lender's resolution plan. The case involved a disagreement over whether certain facilities, including non-fund-based facilities, should be disbursed as part of the resolution process under the Insolvency and Bankruptcy Code (IBC). The NCLAT held that once such facilities are agreed upon in the resolution plan, they must be honored. This ruling clarifies the rights of lenders and debtors in the resolution process and ensures that agreed terms are followed to facilitate an effective and fair resolution under IBC.