The National Company Law Tribunal (NCLT), New Delhi bench of Shri Manni Sankariah Shanmuga Sundaram (Judicial Member) and Dr. Sanjeev Ranjan (Technical Member) held that a Petition under Section 7 of Insolvency & Bankruptcy Code, 2016 (“Code”) is proved to have been filed with Fraud or Malicious intent under Section 65 of the Code if terms of the loan extended by Financial Creditor are designed to cause default by the Corporate Debtor.
Brief Facts:
The Applicant, Saivi Finance (“Financial creditor”) is a Non-Banking Financial Company that provides financial assistance to under-served businesses in India as per the guidelines issued by the Reserve Bank of India.
The financial creditor extended a loan to M/s…
