The National Company Law Appellate Tribunal, Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member – Technical), has ruled that the application u/s 9 of the IBC, 2016, cannot be sustained if the operational debt is settled before the date of admission.
Background of the Case
Section 9 IBC application, seeking CIRP of the corporate debtor, was filed by the operational creditor. During the pendency of proceedings, the operational creditor and the corporate debtor entered into a settlement by way of an agreement dated June 28, 2025. Information with regard to the settlement was not filed with the adjudicating authority, thus, the adjudicating authority admitted the application…