The National Company Law Appellate Tribunal (NCLAT) recently dismissed an appeal filed by a suspended director who challenged the initiation of the Corporate Insolvency Resolution Process (CIRP) on grounds of procedural impropriety and alleged suppression of facts.
The appeal was filed by Sushil Jejani, a suspended director of Nova Steels (India) Ltd., challenging the order dated 03.01.2024 passed by the National Company Law Tribunal (NCLT), Kolkata Bench, which admitted a Section 7 application filed by Prateek Gupta, the Financial Creditor.
The CIRP against Nova Steels (India) Ltd. was triggered on the basis of a loan transaction involving a sum of ₹4 crores disbursed by the Financial Creditor. This transaction,…