Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
IBC - Highlights / Catch Notes

Home Highlights September 2024 Year 2024 This

The NCLAT upheld the admission of the Section 7 application ...


Financial Creditor's Application to Initiate Insolvency Proceedings Against Corporate Debtor Upheld by NCLAT.

Case Laws     IBC

September 30, 2024

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 that the Financial Creditor had a financial debt which had become due and payable, and there was an incidence of default. The application was filed within the time limitation as the Corporate Debtor had acknowledged the outstanding debt. The Corporate Debtor was given an opportunity to regularize its loan account but failed to pay the required amount. The declaration of the account as NPA under SARFAESI Act did not obstruct the Financial Creditor from initiating CIRP. The loan disbursement by the Financial Creditor was interest-bearing, satisfying the definition of financial debt u/s 5(8) of the IBC. The acknowledgment of debt and default was clear and unambiguous. As a debt was due and payable by the Corporate Debtor, and a default had occurred, the Financial Creditor was entitled to file the Section 7 application, which was rightly admitted by the Adjudicating Authority.

View Source

 


 

You may also like:

  1. Admission of section 7 application - financial debt owed by the Corporate Debtor or not - Home Buyers - The application was filed by respondents, who were allottees in a...

  2. Initiation of CIRP - Financial Creditors - allegation fraud against the Financial Creditor - Allegations of fraud and forgery are very easy to make but very difficult to...

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

  4. When a Company is unable to pay the debt or refuse to pay the debt, the financial creditor or the operational creditor, as the case may be, can initiate insolvency...

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

  6. 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...

  7. Without initiating any ‘Corporate Insolvency Resolution Process’ against the ‘Principal Borrower’, it is always open to the ‘Financial Creditor’ to initiate ‘Corporate...

  8. Without initiating any ‘Corporate Insolvency Resolution Process’ against the ‘Principal Borrower’, it is always open to the ‘Financial Creditor’ to initiate ‘Corporate...

  9. Corporate insolvency resolution process (CIRP) initiated against corporate debtor and corporate guarantor. Financial creditor granted loan to corporate debtor, secured...

  10. CIRP Proceedings against the Personal Guarantors - the ‘Adjudicating Authority’ / ‘Tribunal’, has ‘jurisdiction’, to ‘entertain’/’initiate’, the ‘Insolvency Proceedings’...

  11. Corporate Insolvency Resolution Process (CIRP) against guarantor - corporate debtor admittedly being corporate guarantor to the money borrowed by the principal borrowers...

  12. 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...

  13. Initiation of CIRP - pre-admission stage - home buyers and creditors - corporate debtor has initiated the process of settlement with the financial creditors - whether,...

  14. Validity of Winding up order - Antrix, which initiated the proceedings for winding up, is neither a financial creditor nor an operational creditor nor a corporate...

  15. The NCLAT held that the corporate debtor failed to substantiate a pre-existing dispute with the operational creditor regarding the unpaid operational debt. The corporate...

 

Quick Updates:Latest Updates