Initiation of CIRP - NCLAT admitted the application u/s 7 - NPA ...
Insolvency and Bankruptcy
April 29, 2024
Initiation of CIRP - NCLAT admitted the application u/s 7 - NPA - Relevant date of default - The National Company Law Appellate Tribunal upheld the decision to initiate CIRP against the corporate debtor. The Tribunal confirmed that the declaration of the loan as an NPA on the due date for lack of payment beyond 90 days stands as the valid default date. This decision was supported by the regulatory definitions and reinforced by supreme court rulings that align NPA declarations with the default dates under the IBC. The arguments by the Appellant regarding the necessity of a cure period notice were dismissed by the Tribunal, which cited that the financial institution's actions were within legal bounds and supported by judicial precedents.
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