Rejection of Section 10 application under IBC upheld as ...

Wilful defaulter can't misuse IBC to evade debt; unclean hands disentitle Sec 10 relief. Stalling tactics, selective reprieve bid negate resolution objective.

Case Laws Insolvency and Bankruptcy

July 27, 2024

Rejection of Section 10 application under IBC upheld as Appellant company filed it with unclean hands after evading Wilful Defaulter proceedings by Respondent Bank. Appellant selectively approached Bank for reprieve while avoiding proceedings, embroiling Bank in multiple litigations to stall recovery. Section 10 rights can't be misused to derive undue advantage over insolvency resolution objective. Adjudicating Authority rightly found Appellant's bonafides doubtful, filing motivated by reasons other than insolvency resolution. Appeal dismissed by NCLAT.

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Rejection of Section 10 application under IBC upheld as ...

Wilful defaulter can't misuse IBC to evade debt; unclean hands disentitle Sec 10 relief. Stalling tactics, selective reprieve bid negate resolution objective.

Case Laws Insolvency and Bankruptcy

July 27, 2024

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