Refusal to stay the proceedings initiated by the Respondent, ...

NCLT Can Use Discretion to Admit Financial Creditor's Application for Corporate Insolvency Under IBC Section 7(5)(a.

July 14, 2022

Case Laws Insolvency and Bankruptcy SC

Refusal to stay the proceedings initiated by the Respondent, Axis Bank Limited against the Appellant - The title “Insolvency and Bankruptcy Code” makes it amply clear that the statute deals with and/or tackles insolvency and bankruptcy. It is certainly not the object of the IBC to penalize solvent companies, temporarily defaulting in repayment of its financial debts, by initiation of CIRP. Section 7(5)(a) of the IBC, therefore, confers discretionary power on the Adjudicating Authority (NCLT) to admit an application of a Financial Creditor under Section 7 of the IBC for initiation of CIRP - SC

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Refusal to stay the proceedings initiated by the Respondent, ...

NCLT Can Use Discretion to Admit Financial Creditor's Application for Corporate Insolvency Under IBC Section 7(5)(a.

July 14, 2022

Case Laws Insolvency and Bankruptcy SC

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