Pendency of suit not a bar to admit Sec 7 IBC plea by financial creditor, NCLATOctober 5 2019
The National Company Law Appellate Tribunal (NCLAT) has held that the pendency of a suit with respect to a dispute associated with a default cannot be a ground to reject an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by a Financial Creditor.
A pre-existing dispute cannot be a subject matter of Section 7 IBC, though it may be relevant under Section 9 of IBC, the Appellate Tribunal has held.
With a premium account you get:
- One year of unrestrcited access to previous interviews, columns and articles
- One year access to all archival material
- Access to all Bar & Bench reports