The NCLAT set aside the adjudicating authority's mechanical ...

Personal Guarantors Granted Fresh Chance to Challenge Insolvency Application After Tribunal's Comprehensive Review Directive Under Section 95

April 8, 2025

Case Laws IBC AT

The NCLAT set aside the adjudicating authority's mechanical admission of a Section 95 application, finding a lack of independent assessment. The tribunal emphasized that the adjudicating authority must conduct a comprehensive evaluation beyond the Resolution Professional's report, particularly considering the already realized assets under SARFAESI. The court directed a fresh opportunity for personal guarantors to file objections within 30 days, mandating the adjudicating authority to comprehensively review all materials before passing a renewed order under Section 100. The appellate tribunal remanded the matter for a de novo examination, ensuring a substantive and procedurally sound review of the insolvency proceedings.

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The NCLAT set aside the adjudicating authority's mechanical ...

Personal Guarantors Granted Fresh Chance to Challenge Insolvency Application After Tribunal's Comprehensive Review Directive Under Section 95

April 8, 2025

Case Laws IBC AT

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