The Appellate Tribunal dismissed the appeal, holding that the ...

Financial creditor's application admitted, consent decree default beyond Section 10A purview.

Case Laws IBC

November 13, 2024

The Appellate Tribunal dismissed the appeal, holding that the Section 7 application filed by the Financial Creditor was not barred by Section 10A of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor had committed defaults on 21.12.2017 and 29.06.2018, leading to accounts being declared as NPA by lenders. Although assignment was made in favor of the Financial Creditor in 2019 and a settlement was agreed upon on 26.04.2019, which was not honored, constituting a further default prior to the Section 10A period. The Section 7 application was based on the default arising from the Consent Decree dated 29.08.2022, which cannot be pegged within the Section 10A period. The Adjudicating Authority did not err in admitting the Section 7 application, as it was not hit by Section 10A of the IBC.

View Source

← Previous Next →

The Appellate Tribunal dismissed the appeal, holding that the ...

Financial creditor's application admitted, consent decree default beyond Section 10A purview.

Case Laws IBC

November 13, 2024

You may also like:

Admission of section 7 application - initiation of CIRP against the Corporate Debtor - existence of debt and default or not - When the Financial Creditor had repeatedly...

The NCLAT upheld the admission of the Section 7 application filed by the Financial Creditor (Respondent No.1) for initiating CIRP against the Corporate Debtor. It held...

Admission of section 7 application - financial debt or not - The Tribunal affirmed that the disbursal of ₹5 crores to the corporate debtor by the financial...

Corporate insolvency resolution process (CIRP) - claims filed under a CIRP by "decree holder" - Once admitted as a creditor, the efforts must be to preserve and maximise...

CIRP process - Financial Creditors - In the present case, the Bank has not acted fairly - It was omission or commission of the Bank in not refunding the facility fee to...

Initiation of CIRP - NCLT rejected the application - Financial Creditors - non-disbursement of part of financial assistance sanctioned by the Financial Creditors -...

This legal summary concerns the maintainability of a Section 7 application for initiating the Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor....

Disqualification of a director of the financial creditor to sign the Section 7 application was challenged. The application u/s 7, signed by the director of the financial...

Initiation of Corporate Insolvency Resolution Process - financial creditor - home buyers - failure to pay assured return /monthly rent - The applicants fall within the...

The Corporate Debtor denied the existence of a loan agreement with 12% interest, as claimed by the Financial Creditor in the Section 7 application. To qualify as a...

Initiation of CIRP - The burden of prima facie proving occurrence of the default and that the application filed under Section 7 of the Code is within the period of...

Admission of Section 9 application filed by Operational Creditor - time limitation - Section 10A of IBC - The Tribunal found that apart from the lease rental of April...

Initiation of CIRP - NCLT admitted the application - The event of default had not occurred with Principal Loan, the event of default did occur for Additional Loan and...

The Appellate Tribunal affirmed the decision to exclude the Appellant and other unsecured Financial Creditors from the Committee of Creditors (CoC). The key issues were...

Section 7 application filed by the Financial Creditor was erroneously rejected by the Adjudicating Authority despite debt and default by the Corporate Debtor. The...

Quick Updates: