The Supreme Court has reiterated that the proceedings under the IBC cannot be defeated by a corporate debtor by raising a moonshine defence only to delay the process. The Apex Court further affirmed that the adjudicating authority must advert to the contentions put forth on the application filed under Section 7 of the IBC and examine the material placed before it by the financial creditor.
In the matter before the Apex Court, the initiation of the corporate insolvency resolution process by an operational creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016 , was in issue.
The Division Bench of Justice Sanjay Kumar and Justice Alok Aradhe held, “Applying this legal standard to the case on hand we have no…