Initiation of the CIRP - deficiencies in its services - The NCLT ...
Insolvency and Bankruptcy
November 24, 2021
Initiation of the CIRP - deficiencies in its services - The NCLT has merely relied upon the procedural infirmity on part of the appellant in the issuance of the termination notice, i.e., it did not give thirty days’ notice period to the Corporate Debtor to cure the deficiency in service. The NCLAT, in its impugned judgment, has averred that the decision of the NCLT preserves the ‘going concern’ status of the Corporate Debtor but there is no factual analysis on how the termination of the Facilities Agreement would put the survival of the Corporate Debtor in jeopardy. - The proceedings initiated against the appellant shall stand dismissed for absence of jurisdiction. - SC
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