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‘Non-fund-based facilities cannot be refused by lenders solely due to the non-availability of a disbursement clause, as decided by NCLAT, dismissing State Bank of India’s appeal.

The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal by State Bank of India, a financial creditor, against an order allowing the disbursement of Non-Fund Based (NFB) facilities to a corporate debtor. The dispute arose from a resolution plan...