The statutory right of a Financial Creditor satisfying the requirements of Section 7 to trigger CIRP cannot be made subservient to adjudication of an application u/s 241 & 242 of the Companies Act, 2013- Jagmohan Bajaj Vs. Shivam Fragrances (P) Ltd.- NCLAT

Internal dispute of Directors of Corporate Debtor and pendency of application under Section 241 and 242 of Companies Act, 2013 before NCLT, New Delhi Bench for adjudication does not construed a valid defense to triggering of Insolvency Resolution Process. Triggering of Insolvency Resolution Process cannot be defeated by taking resort to pendency of internal dispute between Directors of Corporate Debtor on allegations of oppression and mismanagement. The statutory right of a Financial Creditor satisfying the requirements of Section 7 of the I&B Code to trigger Insolvency Resolution Process cannot be made subservient to adjudication of an application under Section 241 and 242 of the Companies Act, 2013. 

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