IBC, 2016 : NCLT's Order passed in Contravention of Rules Set Aside

 IBC, 2016 : NCLT's Order passed in Contravention of Rules Set Aside

Section 3 (11) of Insolvency and Bankruptcy Code, 2016 ("IBC, 2016") defines debt and says that “debt” means a liability or obligation in respect of a claim which is due from any person and includes a financial debt and operational debt." Sec. 6 of IBC, 2016 permits even a corporate debtor initiate CIRP. 

In a recent case related to IBC, 2016 in Jasti Samba Siva Rao v SREI Equipment Finance Ltd [2023] GCtR 2125 (NCLAT, Chennai), the Order of National Company Law Tribunal ("NCLT") was challenged. 

Explaining the effect of applicable Rules, the Order passed by NCLT was set aside.

One can download full copy of decision free of cost from the following link : - 

https://nclat.nic.in/display-board/judge 

Written by 

Vishal

Delhi

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