https://www.taxtmi.com/caselaws?id=764827 NCLAT dismissed appeal challenging recall of CIRP initiation under Section 65 IBC. Adjudicating Authority found Section 7 application filed fraudulently with malicious intent by financial creditor and corporate debtor's promoters. Court held debt and default were artificially created through routine business entries, violating Section 186 Companies Act. Evidence showed web of conspiracy and collusion to create contrived debt situation for purposes other than insolvency resolution. Section 65 enables recall of CIRP proceedings when filed fraudulently, and Adjudicating Authority correctly exercised jurisdiction after prima facie case established. en-us Thu, 16 Jan 2025 00:00:00 +0530 Sat, 18 Jan 2025 08:47:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764827 NCLAT dismissed appeal challenging recall of CIRP initiation under Section 65 IBC. Adjudicating Authority found Section 7 application filed fraudulently with malicious intent by financial creditor and corporate debtor's promoters. Court held debt and default were artificially created through routine business entries, violating Section 186 Companies Act. Evidence showed web of conspiracy and collusion to create contrived debt situation for purposes other than insolvency resolution. Section 65 enables recall of CIRP proceedings when filed fraudulently, and Adjudicating Authority correctly exercised jurisdiction after prima facie case established. Case-Laws IBC Thu, 16 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764827