https://www.taxtmi.com/caselaws?id=783608 Petitions under s.94 IBC were dismissed under Rule 11 NCLT Rules for non-compliance with directions to serve petition copies on the resolution professional (RP), despite the RP not filing a report under s.99. The NCLAT held that failure to serve and RP's non-filing are independent; mere RP default cannot justify dismissal, and the AA should instead compel filing or replace the RP. However, it found the applicants' own non-compliance prolonged an interim moratorium for about 15 months, materially impairing the financial creditor's substantive right to enforce personal guarantees, and granting relief would unjustly extend that advantage. Consequently, invocation of inherent powers was upheld and the dismissals were confirmed; the appeals were dismissed. en-us Wed, 17 Dec 2025 00:00:00 +0530 Fri, 19 Dec 2025 08:30:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783608 Petitions under s.94 IBC were dismissed under Rule 11 NCLT Rules for non-compliance with directions to serve petition copies on the resolution professional (RP), despite the RP not filing a report under s.99. The NCLAT held that failure to serve and RP's non-filing are independent; mere RP default cannot justify dismissal, and the AA should instead compel filing or replace the RP. However, it found the applicants' own non-compliance prolonged an interim moratorium for about 15 months, materially impairing the financial creditor's substantive right to enforce personal guarantees, and granting relief would unjustly extend that advantage. Consequently, invocation of inherent powers was upheld and the dismissals were confirmed; the appeals were dismissed. Case-Laws IBC Wed, 17 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783608