Simply because there is debt and default, CIRP cannot be initiated, when Corporate Debtor is a going concern – Edelweiss Asset Reconstruction Company Ltd. Vs. Takshashila Heights India Pvt. Ltd. – NCLT Ahmedabad Bench
November 12, 2024
Hon’ble NCLT Ahmedabad Bench held that Corporate Debtor is a going concern. Acts of applicant shows intent of only recovery of money through this process which is not at all object of the IBC, 2016. It appears that application is premature. Observations in Vidarbha Industries Power Ltd. v.. Axis Bank Ltd. (2022) ibclaw.in 91 SC also supports non-initiation of CIRP in case of going concern Corporate Debtor. Thus, the Hon'ble Tribunal has not satisfied that on the facts of the present case mentioned above, CIRP should be initiated against the Corporate Debtor.