Compliance and prior action in terms of MSME Act is not prerequisite or mandatory before any petition under Section 7 of the IBC could be entertained – Axis Bank Ltd. Vs. Midas Petrochem Pvt. Ltd. – NCLT Mumbai Bench
Hon’ble Adjudicating Authority holds that Compliance and prior action in terms of MSME Act is not prerequisite or mandatory before any petition under Section 7 of the Code could be entertained. IBC aims at resolution of the Corporate Debtor and for attaining the same various provisions and regulations are enshrined in the Code. Under Section 7 Petition, the Tribunal has to merely see whether there is a debt and default in the matter before it.