The National Company Law Appellate Tribunal, Principal Bench, ...

Tribunal Confirms Insolvency Process Due to Debt Default and OTS Non-Compliance; Financial Creditor's Actions Lawful.

June 3, 2024

Case Laws Insolvency and Bankruptcy AT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi addressed issues regarding debt default, impact of One Time Settlement (OTS) Agreement, and Financial Creditor's conduct. The Tribunal found the Financial Creditor's claim of Rs. 58.38 Crores valid based on loan agreements and evidence of default. The failure to adhere to OTS terms justified insolvency proceedings despite initial intent to settle. Financial Creditor's actions were deemed lawful, with no evidence of bad faith. The Adjudicating Authority's decision to admit the Company Petition and initiate Corporate Insolvency Resolution Process (CIRP) was upheld due to clear debt admission and default exceeding Rs.1 crore. The appeal was dismissed, affirming the initiation of CIRP.

View Source

← Previous Next →

The National Company Law Appellate Tribunal, Principal Bench, ...

Tribunal Confirms Insolvency Process Due to Debt Default and OTS Non-Compliance; Financial Creditor's Actions Lawful.

June 3, 2024

Case Laws Insolvency and Bankruptcy AT

You may also like:

The National Company Law Appellate Tribunal (NCLAT) dismissed the appeal, upholding the order admitting the Section 7 application filed by ICICI Bank against the...

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, addressed the validity of the admission of a section 7 application in a Corporate Insolvency...

Admission of Section 7 Application - CIRP - The case involved an appeal by a suspended director of a corporate debtor against the admission of a Section 7 application by...

Maintainability of Section 7 application under Insolvency and Bankruptcy Code (IBC) for non-payment of debt analyzed. Financial contract not mandatory for establishing...

The Appellant (SIDBI) had established a clear case of continuous defaults by the Respondent (Sambandh Finserve Private Limited) in loan repayment post the suspension...

Initiation of CIRP - Since Adjudicating Authority has not relied upon the “confirmation and undertaking” and has come to a conclusion that there is a debt and default...

Corporate debtor defaulted in repaying financial debt owed to financial creditor. NCLAT dismissed appeal, upholding orders of adjudicating authority. Transaction...

The Bombay High Court addressed non-compliance with Rule 28 of the NCLT Rules, 2016 regarding timely registration and disposal of applications u/s 94 and 95 of the...

Maintainability of section 7 application - Initiation of CIRP - existence of debt and default - date of default - On 14.02.2020 the account was declared NPA - The...

The Tri directed the defreezing of the Corporate Debtor's demat account, which had been frozen due to non-compliance with SEBI LODR regulations. The Tribunal determined...

The Corporate Debtor admitted outstanding operational debt owed to the Operational Creditor, citing adverse cash flow as the reason for non-payment, without attributing...

Maintainability of application - initiation of CIRP - Period of limitation - the legislative policy now is to move away from the concept of “inability to pay debts” to...

CIRP - Neither the Section of law nor the Regulation says that the claim of a debt can be made only when there is a default. The debt and default would be a sine qua non...

Existence of financial debt established through acknowledgment of part payments and promise to pay next installment. Section 10A bar not applicable as default occurred...

The circular issued by the Government of Tamil Nadu, Commercial Taxes Department, addresses the treatment of statutory dues under GST law for taxpayers whose proceedings...

Quick Updates: