SC Upholds Admission of CIRP Plea Under Section 7
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- Last Updated on 6 May, 2025
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Case Details: Sandeep Jain vs. IDBI Trusteeship Services Ltd. - [2025] 174 taxmann.com 51 (SC)
Judiciary and Counsel Details
- Abhay S. Oka & Ujjal Bhuyan, JJ.
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Dr Abhishek Manu Singhvi, Ms Pooja Mehra Saigal, Sr. Adv., Rajat Joneja, Advs., Rajesh P., AOR, Ms Sakshi Kapoor & Yash Verma, Advs. for the Appellant.
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Shyam Divan, Krishnendu Datta, Sr. Advs., Pranjit Bhattacharya, Ms Salonee Shukla, Advs. & Vaibhav Niti, AOR, for the Respondent.
Facts of the Case
In the instant case, the Corporate Debtor had issued non-convertible debentures to Financial Creditor. However, due to a default, financial creditor issued a notice to corporate debtor and filed section 7 application.
The Adjudicating Authority admitted said application. Consequently, the Appellant challenged said order before NCLAT. The NCLAT vide order held that there was a debt and default, which had been acknowledged from time to time by Corporate Debtor.
Further, Corporate Debtor had failed to honour its repayment obligations as per financial documents. The NCLAT further held that Financial Creditor had succeeded in proving debt and default and ingredients under section 7 were fulfilled and, thus, order passed by Adjudicating Authority admitting section 7 application did not require any interference.
Supreme Court Held
Subsequently, in view of facts, the Supreme Court held that there was no error in view taken by NCLAT, thus appeal against impugned order was to be dismissed.
List of Cases Reviewed
- Sandeep Jain v. IDBI Trusteeship Services Ltd. [2025] 174 taxmann.com 50 (NCLAT-New Delhi) (para 1) affirmed.
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