https://www.taxtmi.com/caselaws?id=415917 The SC held that the Adjudicating Authority cannot dismiss a Section 7 petition merely because the corporate debtor initiated settlement processes with some financial creditors. Under Section 7(5) of the IBC, the Adjudicating Authority must either admit or reject the application after determining if default occurred. The Authority cannot abdicate jurisdiction by directing parties to settle outside the statutory framework. The SC found that both the Adjudicating Authority and Appellate Authority erred by failing to exercise their mandated jurisdiction. The appeal was allowed, establishing that settlement negotiations do not preclude proper examination of CIRP petitions under statutory provisions. en-us Tue, 14 Dec 2021 00:00:00 +0530 Wed, 28 May 2025 12:11:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=415917 The SC held that the Adjudicating Authority cannot dismiss a Section 7 petition merely because the corporate debtor initiated settlement processes with some financial creditors. Under Section 7(5) of the IBC, the Adjudicating Authority must either admit or reject the application after determining if default occurred. The Authority cannot abdicate jurisdiction by directing parties to settle outside the statutory framework. The SC found that both the Adjudicating Authority and Appellate Authority erred by failing to exercise their mandated jurisdiction. The appeal was allowed, establishing that settlement negotiations do not preclude proper examination of CIRP petitions under statutory provisions. Case-Laws IBC Tue, 14 Dec 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=415917