https://www.taxtmi.com/caselaws?id=458789 NCLAT held that the Adjudicating Authority erred in rejecting a Section 65 application without considering its merits. The court ruled that admission of Section 7 proceedings does not preclude examination of allegations under Section 65 regarding fraudulent or malicious initiation of insolvency proceedings. The appellant, being a home-buyer in related proceedings, had sufficient locus standi to file the application. The timing of filing during resolution plan consideration does not eliminate the court's jurisdiction to investigate fraud allegations. The Adjudicating Authority retains power to impose penalties and close CIRP if fraudulent initiation is established. Appeal was disposed of, directing merit-based consideration of the Section 65 application. en-us Fri, 02 Feb 2024 00:00:00 +0530 Fri, 15 Nov 2024 10:31:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458789 NCLAT held that the Adjudicating Authority erred in rejecting a Section 65 application without considering its merits. The court ruled that admission of Section 7 proceedings does not preclude examination of allegations under Section 65 regarding fraudulent or malicious initiation of insolvency proceedings. The appellant, being a home-buyer in related proceedings, had sufficient locus standi to file the application. The timing of filing during resolution plan consideration does not eliminate the court's jurisdiction to investigate fraud allegations. The Adjudicating Authority retains power to impose penalties and close CIRP if fraudulent initiation is established. Appeal was disposed of, directing merit-based consideration of the Section 65 application. Case-Laws IBC Fri, 02 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458789