NCLT To Decide S.7(1) Compliance Prior to Admission: NCLAT [Read Order]
The NCLAT has held that NCLT has to decide compliance with sec 7 (1) prior to admission
NCLT – Decide S.7(1) – Compliance Prior – Admission – NCLAT – taxscan
NCLT – Decide S.7(1) – Compliance Prior – Admission – NCLAT – taxscan
The National Company Law Appellate Tribunal ( NCLAT ) has held that the National Company Law Tribunal ( NCLT ) to decide Section 7(1) of the Insolvency and Bankruptcy Code, 2016 compliance prior to admission. The bench upheld the order of NCLT.
Globe Capital Market Ltd, the appellant challenged the order by which the order application filed by the Appellant under Section 7 has been rejected on the ground that the Respondent is a Financial Service Provider and against a Financial Service Provider the application under Section 7 is not maintainable.
The appellant contended that the relationship with the Respondent of the Appellant was different. When the Respondent is a Financial Service Provider, application under Section 7 is not maintainable since he is not included in the definition of corporate person as defined in Section 3(7) of the Code.
A Coram comprising Justice Ashok Bhushan, ( Chairperson ), Barun Mitra, (Member ( Technical ) ) and Arun Baroka, ( Member Technical ) that the Adjudicating Authority has not committed any error in rejecting the application as not maintainable. While dismissing the appeal, the authority upheld the impugned order.
To Read the full text of the Order CLICK HERE
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