National Company Law Appellate Tribunal, New Delhi: In an appeal filed by the suspended director of the corporate debtor challenging the Adjudicating Authority’s order dated 08-01-2025 admitting an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), a 3-member bench of Ashok Bhushan, J. (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member), upheld the Adjudicating Authority’s order. The NCLAT held that
“The default in repayment of the obligation by obligors cannot in any manner be put on the financial creditor nor constitution of PMC in any manner affect the obligation or absolve the corporate debtor from its default for repayment of the debt.”
Factual Matrix
In the instant…
