TMI BlogThe NCLAT held that the date of default for invoking proceedings u/s 7 of the Insolvency and Bankruptcy...The National Company Law Appellate Tribunal (NCLAT) determined that the date of default for initiating proceedings under Section 7 of the Insolvency and Bankruptcy Code should be calculated from October 1, 2012, when notices under Section 13(2) of the SARFAESI Act were issued to the Corporate Debtor. The One-Time Settlement (OTS) agreement from January 3, 2020, was not recognized as the date of default. Since the application under Section 7 was filed on July 19, 2020, beyond the limitation period from the 2012 default date, the NCLAT dismissed the appeal, ruling the proceedings were barred by limitation. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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