Maintainability of a Section 7 insolvency petition against a financial service provider denied; appeal dismissed for non maintainability and complex d...
Provisional attachment under Prevention of Money Laundering Act requires exhaustion of statutory remedies; impugned order set aside, appeal to tribuna...
Restoration of property under Prevention of Money Laundering Act after attachment dispute rendered academic; possession directed to successful resolut...
NCLAT held that a Section 65 challenge requires pleadings and material showing fraudulent or malicious initiation of CIRP, and that a grievance over non-issuance of NOC, without more, does not meet that threshold. The homebuyers' complaint was confined to prejudice in obtaining possession and conveyance, but the Tribunal found no cogent material indicating that the Section 7 process was filed for a purpose other than insolvency resolution. As the NOC issue arose after default, it could not invalidate or obstruct the insolvency proceedings. The rejection of the Section 65 application was therefore affirmed and the appeal dismissed.
NCLAT held that a Section 65 challenge requires pleadings and material showing fraudulent or malicious initiation of CIRP, and that a grievance over non-issuance of NOC, without more, does not meet that threshold. The homebuyers' complaint was confined to prejudice in obtaining possession and conveyance, but the Tribunal found no cogent material indicating that the Section 7 process was filed for a purpose other than insolvency resolution. As the NOC issue arose after default, it could not invalidate or obstruct the insolvency proceedings. The rejection of the Section 65 application was therefore affirmed and the appeal dismissed.
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