In a recent case, the New Delhi bench of the National Company Law Tribunal(NCLT) has held that Insolvency Bankruptcy Code Proceedings are not to recover applicants dues. Dismissed application, as the applicant approached for recovery rather than facilitating the resolution of the Corporate Debtor, who is solvent and operational.
The application under Section 7 of the Insolvency and Bankruptcy Code, 2016 has been filed by Mr. Akshay Kumar Rout, Prop. of Jagannath Traders, seeking initiation of CIRP against M/s. Indo Laminates Pvt. Ltd., the Corporate Debtor herein for the alleged default amount of Rs. 1,13,45,000/- as on 03.05.2025.
The Applicant granted financial assistance to the Corporate Debtor amounting to Rs. 1,05,00,000/- at an…