IBC, 2016 : Suspended Director's Appeal Challenging Order of NCLT Dismissed
Litigations under Insolvency and Bankruptcy Code, 2016 ("IBC, 2016") occurs at various levels.
According to S.5(7) of IBC, 2016, “financial creditor” means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to. It is important to note that under S.14 (2) of IBC, 2016 "the supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period". S.16 (1) of IBC, 2016 permits NCLT to appoint an IRP.
In a recent case [Citation : Mehulkumar Arvindbhai Patel and Anr. v Vinod Tarachand Agarwal [2023] GCtR 2126 (NCLAT)], the suspended Director had filed the appeal.
The appeal was filed challenging the Order of NCLT. After untangling one of the most controversial issues related to IBC, 2016, the appeal filed by suspended director was dismissed in December 2023.
One can download full copy of the decision free of cost from the following link : -
https://nclat.nic.in/display-board/judge
Written by
Vishal
Delhi
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