Extended period of limitation unsustainable; allowable deductions for prompt payment discounts, pro rata recovery, freight and VAT led to demand being...
Procedural incompleteness in an insolvency application should be treated as curable rather than a ground to foreclose the applicant's right to initiate CIRP; the adjudicating authority must assess whether the application satisfies statutory completeness and whether a default exists, and must afford the applicant an opportunity to rectify defects before rejecting. Rejection based solely on an auditor's disclaimer or perceived unreliability of financial statements without permitting supplementation is unsustainable; the matter requires fresh consideration with directions to allow production of missing documents and application of settled admission tests.
Procedural incompleteness in an insolvency application should be treated as curable rather than a ground to foreclose the applicant's right to initiate CIRP; the adjudicating authority must assess whether the application satisfies statutory completeness and whether a default exists, and must afford the applicant an opportunity to rectify defects before rejecting. Rejection based solely on an auditor's disclaimer or perceived unreliability of financial statements without permitting supplementation is unsustainable; the matter requires fresh consideration with directions to allow production of missing documents and application of settled admission tests.
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