Section 7 IBC plea restored; rejection over creditor authorization faulted, matter remitted for fresh, reasoned hearing

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....NCLAT allowed the appeal, setting aside the NCLT's order rejecting the Section 7 IBC application on the ground of lack of competence of the creditor's representative. It held that, after reserving judgment, NCLT could not entertain an oral objection on authorization and then disregard the subsequently filed Board Resolution and IA under Section 60(5) IBC without reasoned adjudication. The procedure adopted was found to be legally flawed and not a proper adjudication of the lis on merits. The matter was remitted to NCLT, Hyderabad Bench, to reconsider the Section 7 petition afresh on all issues, including authorization, after granting effective opportunity of hearing to both sides.....