https://www.taxtmi.com/caselaws?id=769156 NCLAT dismissed the appeal challenging rejection of Section 7 application under IBC. The court found that a valid moratorium was in place until September 2023 following completion of the Sapphire transaction, precluding any default or debt becoming due. The appellant-debenture trustee had agreed to restructuring proposal and acted upon it by releasing charges and funds. NCLAT held the Section 7 application was filed with ulterior motives to coerce the corporate debtor into insolvency despite substantial assets, rather than genuine insolvency resolution. The adjudicating authority correctly dismissed the application as no default existed during moratorium period. en-us Wed, 16 Apr 2025 00:00:00 +0530 Mon, 21 Apr 2025 08:41:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769156 NCLAT dismissed the appeal challenging rejection of Section 7 application under IBC. The court found that a valid moratorium was in place until September 2023 following completion of the Sapphire transaction, precluding any default or debt becoming due. The appellant-debenture trustee had agreed to restructuring proposal and acted upon it by releasing charges and funds. NCLAT held the Section 7 application was filed with ulterior motives to coerce the corporate debtor into insolvency despite substantial assets, rather than genuine insolvency resolution. The adjudicating authority correctly dismissed the application as no default existed during moratorium period. Case-Laws IBC Wed, 16 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769156