https://www.taxtmi.com/caselaws?id=778060 NCLAT upholds the adjudicating authority's finding that the Section 7 initiation was collusive and constituted a sham financial debt between related parties under Section 5(24). Backdated and unregistered documents, overlapping directorships and unexplained accounting entries indicated fabrication and fraud; the court pierced the corporate veil and sustained the Section 65 recall of CIRP proceedings. The timing of the Section 65 application was immaterial given the fraud, and reversal of the Section 7 admission did not amount to impermissible review. Appeal dismissed. en-us Mon, 08 Sep 2025 00:00:00 +0530 Wed, 10 Sep 2025 08:39:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=778060 NCLAT upholds the adjudicating authority's finding that the Section 7 initiation was collusive and constituted a sham financial debt between related parties under Section 5(24). Backdated and unregistered documents, overlapping directorships and unexplained accounting entries indicated fabrication and fraud; the court pierced the corporate veil and sustained the Section 65 recall of CIRP proceedings. The timing of the Section 65 application was immaterial given the fraud, and reversal of the Section 7 admission did not amount to impermissible review. Appeal dismissed. Case-Laws IBC Mon, 08 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=778060