Yet again, the Supreme Court of India has said that if the National Company Law Tribunal (NCLT) is satisfied that a default has occurred, then it has no option but to admit an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The tribunal has no discretion in such matters, it said this while dealing with M Suresh Kumar Reddy vs Canara Bank & Ors.
Canara Bank, a financial creditor, filed an application against Kranthi Edifice Pvt Ltd before NCLT, Hyderabad, under Section 7 of the IBC for defaults in repayment of an overdraft facility and bank guarantees. NCLT, Hyderabad, admitted the application on June 27, 2022. M Suresh Kumar Reddy, a suspended director of the corporate debtor, filed an appeal against the or…
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