Appeal dismissed; admission of Section 7 application upheld despite pending Section 66 challenge and sham loan allegations SC dismissed the appeal, upholding the Adjudicating Authority's admission of the Section 7 application. The appellate body had found debt and default ...
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Appeal dismissed; admission of Section 7 application upheld despite pending Section 66 challenge and sham loan allegations
SC dismissed the appeal, upholding the Adjudicating Authority's admission of the Section 7 application. The appellate body had found debt and default against the corporate debtor established; a pending Section 66 challenge and allegations that the loan was sham or collusive did not negate the admitted debt for admission purposes. The court found no grounds to interfere with the impugned judgment and therefore declined to disturb the admission order.
The Court examined the petition under Section 66 of the Insolvency and Bankruptcy Code, 2016, and the reasoning in the impugned judgment of the National Company Law Appellate Tribunal, Principal Bench, New Delhi. It held that there was no basis to disturb the NCLAT's conclusion, stating it did "not find any good ground and reason to interfere with the impugned judgment." Consequently, the appeal is dismissed. All pending applications, if any, are directed to stand disposed of. The decision affirms the NCLAT's application of Section 66 IBC principles and rejects interference by the higher court in the absence of demonstrable error or illegality in the appellate tribunal's reasoning.
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