The National Company Law Appellate Tribunal (NCLAT) Principal Bench at New Delhi has upheld the dismissal of a Section 7 application under the Insolvency and Bankruptcy Code, 2016, holding that no Corporate Insolvency Resolution Process (CIRP) can be initiated where the date of default falls within the period suspended by Section 10A during the COVID-19 pandemic.
The Tribunal reiterated that once a creditor specifies a particular default date in the demand notice and the petition, the proceedings must proceed on that basis, and a CIRP application is not maintainable for such barred defaults.
The bench, comprising Justice Yogesh Khanna (Judicial Member) and Ajai Das Mehrotra (Technical Member), was hearing an appeal…