Any default committed during the Section 10A period cannot be held to bar CIRP application which is filed on the basis of default prior to Section 10A and subsequent to Section 10A period – Nitin Chandrakant Desai Vs. Edelweiss Asset Reconstruction Ltd. & Anr. – NCLAT New Delhi

NCLAT held that the Adjudicating Authority has noticed and returned a finding that the default recorded in the NESL is 31.01.2020. The default on 31.01.2020 is obviously prior to the Section 10A period. When default has been committed by the Corporate Debtor prior to Section 10A period, any default committed during the Section 10A period can not be held to bar the application which is filed on the basis of default prior to Section 10A and subsequent to Section 10A period. Reading of the Application indicates that default was committed by the Corporate Debtor prior to Section 10A period. We are satisfied that no error has been committed by the Adjudicating Authority in admitting Section 7 Application. There is no merit in the Appeal, the Appeal is dismissed.

Any default committed during the Section 10A period cannot be held to bar CIRP application which is filed on the basis of default prior to Section 10A and subsequent to Section 10A period – Nitin Chandrakant Desai Vs. Edelweiss Asset Reconstruction Ltd. & Anr. – NCLAT New Delhi Read Post »