Admission of Section 7 application is not obligatory merely on proof of debt and default – Shaikh Mohammed Tariq Vs. Aegis Forging Ltd. – NCLAT New Delhi
NCLAT held that there is already an award to pay Cash Security of Rs. 3,64,58,785/- with interest, which award has already been put in execution by the Financial Creditor, this was reason good enough to refuse admission of Section 7 application. It has now been laid down by the Hon’ble Supreme Court in Vidarbha Industries Power Ltd. vs Axis Bank Limited that admission of Section 7 application is not obligatory merely on proof of debt and default.
