Section 94 Of IBC Cannot Be Used To Hinder Recovery Process Under SARFAESI Act: NCLAT New Delhi

NCLAT, New Delhi, held that Section 94 of the IBC (Insolvency Resolution Process for Individuals) cannot be used to hinder the recovery process under the SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act). The 1 appellate tribunal clarified that the IBC provisions for individual insolvency are not intended to obstruct or override the established mechanisms for secured creditors to recover their dues under SARFAESI. This ruling ensures that banks and financial institutions can continue their recovery actions against individual borrowers even if they initiate IBC proceedings.