https://www.taxtmi.com/caselaws?id=772490 The NCLAT Chennai dismissed an appeal challenging the admission of bankruptcy applications under Section 122(1) of the I&B Code, 2016. The appellant, a personal guarantor to BRG Energy Limited, contested the treatment of SEBI penalties as 'excluded debt'. The tribunal held that penalties imposed by SEBI constitute 'fine' under Section 79(15)(a) of the I&B Code, 2016, which defines excluded debt as "liability to pay fine imposed by a court or tribunal." The court ruled that SEBI penalties, being regulatory in nature, fall within the exclusion provision and cannot be included in bankruptcy proceedings. The tribunal found the lower court's exclusion of SEBI penalty from bankruptcy proceedings legally sound and consistent with statutory provisions. en-us Wed, 30 Apr 2025 00:00:00 +0530 Tue, 10 Jun 2025 08:43:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772490 The NCLAT Chennai dismissed an appeal challenging the admission of bankruptcy applications under Section 122(1) of the I&B Code, 2016. The appellant, a personal guarantor to BRG Energy Limited, contested the treatment of SEBI penalties as 'excluded debt'. The tribunal held that penalties imposed by SEBI constitute 'fine' under Section 79(15)(a) of the I&B Code, 2016, which defines excluded debt as "liability to pay fine imposed by a court or tribunal." The court ruled that SEBI penalties, being regulatory in nature, fall within the exclusion provision and cannot be included in bankruptcy proceedings. The tribunal found the lower court's exclusion of SEBI penalty from bankruptcy proceedings legally sound and consistent with statutory provisions. Case-Laws IBC Wed, 30 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772490