The pendency of Civil Suit is no reason for not proceeding to admit Section 7 Application under IBC – Navin Chandra Mishra (Suspended Director of CMR Lifesciences Pvt. Ltd.) Vs. Nand Kishore Palaha and Ors. – NCLAT New Delhi
The Hon’ble NCLAT held that NCLT has already noticed the Civil Suit filed by the Corporate Debtor. The said Civil Suit was filed subsequent to filing of the Company Petition in the High Court which stood transferred to the Adjudicating Authority. The pendency of the Civil Suit was no reason for not proceeding to admit Section 7 Application, when the debt and default was proved. NCLT has rightly admitted the Section 7 Application. The Appeal is dismissed.