https://www.taxtmi.com/caselaws?id=425026 The SC allowed the appeal, holding that NCLT has discretionary power under Section 7(5)(a) of IBC to admit financial creditor applications for CIRP initiation. The Court ruled that NCLT and NCLAT erred in treating CIRP admission as mandatory upon establishing debt and default. The SC emphasized that IBC aims to address insolvency and bankruptcy, not penalize solvent companies with temporary payment defaults. NCLT must consider relevant factors including feasibility of CIRP initiation, overall financial health, and viability of the corporate debtor under existing management before admitting applications. en-us Tue, 12 Jul 2022 00:00:00 +0530 Wed, 18 Jun 2025 13:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=425026 The SC allowed the appeal, holding that NCLT has discretionary power under Section 7(5)(a) of IBC to admit financial creditor applications for CIRP initiation. The Court ruled that NCLT and NCLAT erred in treating CIRP admission as mandatory upon establishing debt and default. The SC emphasized that IBC aims to address insolvency and bankruptcy, not penalize solvent companies with temporary payment defaults. NCLT must consider relevant factors including feasibility of CIRP initiation, overall financial health, and viability of the corporate debtor under existing management before admitting applications. Case-Laws IBC Tue, 12 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=425026