The National Company Law Appellate Tribunal (NCLAT) New Delhi bench upheld the initiation of Corporate Insolvency Resolution Process (CIRP) against Majestic Hotels Limited holding that defaults occurred before COVID-19 suspension period are not protected by section 10A of the Insolvency and Bankruptcy Code, 2016 (IBC) even if payments were to be made during the suspension period.
A bench comprising Justice Ashok Bhushan and Mr. Indevar Pandey (Technical Member) dismissed an appeal filed by the suspended directors of the corporate debtor and affirmed an order passed by the National Company Law Tribunal (NCLT) under section 7 of the IBC admitting the petition filed by U.V. Asset Reconstruction Company Ltd. (UVARCL).
“The…