Application filed by POA holder on Financial Creditor’s behalf maintainable- NCLT

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NCLAT upholds NCLT order, admitting applications filed by Power of Attorney (‘POA’) holders, on behalf of Financial Creditors u/s 7 of the Insolvency and Bankruptcy Code, 2016 (‘the Code’), against Corporate Debtor;
Takes note of Appellant’s (Corporate Debtor’s Director and Shareholder) contention that the application filed by Power of Attorney (‘POA’) holders, on behalf of Financial Creditors was not maintainable on the ground that such POA holders weren’t authorized by the Board of the Financial Creditors; Observes that the Applicants were authorised to file the application vide POAs issued by the Financial Creditors; Relies on Coordinate Bench ruling in Palogix Infrastructure P. Ltd. wherein it was held that “if general authorization is made by ‘Financial Creditor’ in favour of its officers to do needful in legal proceedings, mere use of word ‘Power of Attorney’ while delegating such power will not take away the authority of such officer”; Given that one of the Applicants was authorized by Financial Creditor’s CEO, who in turn was authorized to execute POA in favour of another person, holds that officer delegated with the power, can claim to be the ‘Authorized Representative’ for the purpose of filing application u/s. 7/ 9/ 10 of the Code.
Another ruling on first principle after rulings on limitation and Advocates notice under  Application to Adjudicating Authorities Rules
New Delhi NCLAT
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