The National Company Law Tribunal (NCLT), Mumbai bench of Justice V. G. Bisht (Judicial Member) and Shri Prabhat Kumar (Technical Member) dismissed a section 7 petition on the ground that Financial Creditor cannot seek insolvency of a debtor alleging default in payment of a financial debt when such creditor owes more than the amount claimed to be in default to such debtor.
Background Facts:
Future Consumer Limited (“Financial Creditor”) is engaged in the business of branding, manufacturing, processing, selling and distribution of fast-moving consumer goods. On the other hand, Aussee Oats India Limited (“Corporate Debtor) is an exporter, manufacturer, supplier and trader of cereals, oat meals and other products.
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