Civil appeal dismissed, debt assignment upheld as valid under MGST Act, Article 265 and I&B Code provisions

SC upheld the NCLAT's decision dismissing the corporate debtor's challenge to the assignment of debt under a debt assignment agreement. It held that the assignment was not invalid for want of specific provisions under the MGST Act, nor did it contravene Article 265 of the Constitution or the I&B Code. Finding no legal infirmity or jurisdictional error in the NCLAT's reasoning, SC declined to interfere under its appellate jurisdiction and dismissed the civil appeal, thereby affirming the assignee's status as creditor.

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The Supreme Court condoned the delay in filing the civil appeal and allowed the application seeking exemption from filing a certified copy of the impugned order. The appeal arose from an order of the National Company Law Appellate Tribunal, Principal Bench, New Delhi, in Company Appeal (AT) (Ins.) No. 1876/2024. After hearing learned senior counsel for the appellant and examining the material on record, the Court held that there was "no good ground to interfere with the impugned order" of the NCLAT. Consequently, the civil appeal was dismissed. All pending applications in the matter were also disposed of in view of the dismissal of the main appeal.

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