The Supreme Court held that tribunals can recall insolvency proceedings begun through fraud and collusion, but need not always end them, and sent the Greenopolis case back to NCLT. – Orris Infrastructure Private Limited v. Rakesh Kumar Gupta & Ors.
The Supreme Court has ruled that the insolvency tribunal can recall a corporate insolvency process admitted on a fraudulent and collusive application. It also held that recall is not automatic, since the process may continue where other creditors and stakeholders have a stake in it.
Background
Orris Infrastructure owns about 47 acres in Sector 89, Gurgaon. It signed a development agreement in 2011 with Three C Shelters Private Limited for a housing project called Greenopolis, with 1,862 flats….