NCLT dismisses CIRP application u/s 9 of IBC since Corporate Debtor is inactive due to default in filling its statutory return for the last two years as per MCA portal – R. J. Industries Vs. United Foods Pvt. Ltd. – NCLT New Delhi Bench Court-III
In CIRP application u/s 9 of IBC, it appears from the perusal of the MCA data that the Corporate Debtor is inactive due to default in filling its statutory return for the last two years.
NCLT New Delhi Bench Court-III held that:
(i) It seems that there are no business opportunities left for the Corporate Debtor and the prospect of future business also seems bleak thus there seems no possibility of reviving the Company, if the Corporate Debtor is put in the CIRP for its revival/resolution.
(ii) In the due course of the hearing, the counsel appearing for the Operational Creditor failed to apprise this Adjudicating Authority regarding the current status of the Corporate Debtor.
(iii) Initiating CIRP against the Corporate Debtor is not in the interest of its stakeholders, because the Corporate Debtor is inactive.
(iv) there is hardly any possibility of any Resolution plan likely to be received if the CIRP is initiated against the Corporate Debtor.
(v) Dismissed the application.
