The National Company Law Tribunal (NCLT) Mumbai bench admitted a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Unity Small Finance Bank Limited against Bafna Motors Private Limited holding that defaults committed after section 10A period are sufficient to trigger Corporate Insolvency Resolution Process (CIRP). It further held that interest liability shall not come to an end merely on the ground that default of principal amount fell during 10A period.
A Bench comprising Shri Nilesh Sharma (Judicial Member) and Shri Sameer Kakar (Technical Member) held that the debt exceeded the threshold limit, the default was established and the application was filed within the limitation period.
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