The reason that Corporate Debtor or its Bankers were unable to obtain permission for remittance of amount overseas, cannot be made a reason to hold that no default is committed – Hytera Communications Corporation Ltd. Vs. Simoco Telecommunications (South Asia) Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that present is a fit case to admit when inspite of several promises and acknowledgement, the Corporate Debtor failed to pay the outstanding debt. The Corporate Debtor also has not complied with the order of the Adjudicating Authority directing for depositing the amount equivalent to Indian Rupee in the Court, instead it cited certain regulatory procedure in obtaining the permission for remitting the amount, which order was also not complied by the Corporate Debtor. We are of the view that Adjudicating Authority ought to have admitted Section 9 Application.

The reason that Corporate Debtor or its Bankers were unable to obtain permission for remittance of amount overseas, cannot be made a reason to hold that no default is committed – Hytera Communications Corporation Ltd. Vs. Simoco Telecommunications (South Asia) Ltd. – NCLAT New Delhi Read Post »