NCLT cannot Direct a Forensic Audit to Enquire into Proof of Default at the Pre-Admission Stage

The NCLAT[1] recently held that the NCLT cannot ignore the time frame prescribed under Section 7 of the IBC to embark upon an enquiry to determine whether the applications filed under Section 7 of the IBC contained false information when the matters were at the very threshold stage.

[1] Allahabad Bank v. Poonam Resorts Limited, Company Appeal (AT) (Insolvency) No. 1303 of 2019 & Allahabad Bank. v. Link House Industries Limited Company Appeal (AT) (Insolvency) No. 1304 of 2019.

Published In:Inter Alia - Quarterly Edition - June 2020 [ English
Date: June 30, 2020