SC overturned NCLAT and NCLT's rejection of Section 7 ...

Supreme Court: Once Delay in Filing Rejoinder is Condoned Under IBC, Document Must Be Considered Fully for Section 7 Application

March 4, 2025

Case Laws IBC SC

SC overturned NCLAT and NCLT's rejection of Section 7 application, finding their approach excessively technical and formalistic. The initial tribunal had conditionally allowed filing of rejoinder affidavit after delay condonation but prohibited reliance on its contents - a contradictory stance that fundamentally undermined procedural fairness. The appellate body's affirmation of this position compounded the error. The Court emphasized that once delay is condoned, artificial restrictions cannot be imposed on utilizing the permitted document. This ruling reinforces the principle that procedural requirements should facilitate rather than obstruct substantive justice. Appeal sustained with directions to consider the application afresh including rejoinder submissions.

View Source

← Previous Next →

SC overturned NCLAT and NCLT's rejection of Section 7 ...

Supreme Court: Once Delay in Filing Rejoinder is Condoned Under IBC, Document Must Be Considered Fully for Section 7 Application

March 4, 2025

Case Laws IBC SC

You may also like:

Power to condone the delay in filing of refund application - The prescription as found in Rule 47 specifically empowers the Assessing Officer to condone the delay in...

This case pertains to the precedence and priority of consideration between an application filed u/s 54(C) and Section 7 of the Insolvency and Bankruptcy Code (IBC)...

Refund of accumulated input tax credit - relevant date for the purpose of considering the limitation u/s 54 - The High Court addressed this issue by directing the...

The petitioner filed a refund application within the two-year limitation period for the year 2017-2018 on 17.09.2018, and subsequently filed a fresh refund application...

Condoning the delay in filing the refund application - Power of CIT to ascertain merit in the claim while considering the application for condonation of delay u/s 119 -...

Withdrawal of CIRP Application filed u/s 12 A of IBC - settlement between the Appellants and the Corporate Debtor - On the day when the Application was filed, there was...

The Tribunal examined the maintainability of an application for initiating the Corporate Insolvency Resolution Process (CIRP) u/s 7 of the Insolvency and Bankruptcy Code...

CIRP - Admissibility of two additional documents - The Appellate Tribunal analyzed the timing of the documents in question. It noted that the arbitration petition and...

Rejection of the refund application - rejection on the ground of time limitation - Defective refund application - The High Court held that, even assuming that the...

Relevant date for filing application by Personal Guarantor as well as Creditor - relevant time from which moratorium shall come into force - when shall the application...

Permission to withdraw application filed u/s 9 of the Insolvency and Bankruptcy Code, 2016 was denied, and the Appellant challenged the order contending error in not...

Section 7 application rejected as barred by Section 10A of IBC. Supreme Court held no bar in amending pleadings or filing additional documents u/s 7, but present case...

Dishonor of Cheque - insufficiency of funds - delay of 7 days in filing the complaint - time limitation - The issue of limitation for the first time is raised before the...

Rejection of an application filed u/s 10 of the Insolvency and Bankruptcy Code (IBC) by the Appellant, where the State Bank of India (SBI) had initiated proceedings u/s...

The HC condoned the delay of 799 days by the petitioner in filing Form 9A u/s 119(2)(b) of the Income Tax Act. Despite the delay being bona fide, the Assessing Officer...

Quick Updates: