https://www.taxtmi.com/caselaws?id=765976 NCLAT Principal Bench dismissed an appeal challenging admission of Section 7 application. Corporate debtor argued that since financial creditor controlled majority of Project Monitoring Committee (PMC), subsequent default was orchestrated by the creditor itself. NCLAT held that PMC was constituted only to monitor project, improve sales and complete construction, not to undertake repayment obligations. Constitution of PMC does not absolve corporate debtor from payment obligations or shift blame for default to financial creditor. Adjudicating Authority correctly found existence of debt and default as per settlement agreement. Appeal dismissed with no merit found. en-us Mon, 10 Feb 2025 00:00:00 +0530 Fri, 14 Feb 2025 08:26:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765976 NCLAT Principal Bench dismissed an appeal challenging admission of Section 7 application. Corporate debtor argued that since financial creditor controlled majority of Project Monitoring Committee (PMC), subsequent default was orchestrated by the creditor itself. NCLAT held that PMC was constituted only to monitor project, improve sales and complete construction, not to undertake repayment obligations. Constitution of PMC does not absolve corporate debtor from payment obligations or shift blame for default to financial creditor. Adjudicating Authority correctly found existence of debt and default as per settlement agreement. Appeal dismissed with no merit found. Case-Laws IBC Mon, 10 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765976