Admission of Section 7 application - Assignment Agreement - ...
Debt Assignment Validity Upheld; NCLAT Initiates Insolvency Process for Debtor's Broken Promises and Financial Mismanagement.
May 3, 2024
Case Laws Insolvency and Bankruptcy AT
Admission of Section 7 application - Assignment Agreement - Proper stamping of the agreement - Existence of Debt and Default - Corporate Guarantee - The Appellate Tribunal (NCLAT) dismissed the challenges against the validity of the debt assignment and confirmed the procedural correctness of the creditor's actions under the insolvency code. The repeated failures of the corporate debtor to fulfill settlement promises reinforced the decision to proceed with CIRP, highlighting the debtor's inability to manage its financial obligations effectively.
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