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  • Connect
Jun 30, 2020

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.

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These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.

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