The National Company Law Tribunal (NCLT) has overturned its own July 2023 decision to initiate insolvency proceedings against Logix Infrastructure. The tribunal found that the insolvency application was filed with “fraudulent and mala fide intentions” by the financial creditor, Experts Realty Professionals. This rare move highlights ongoing concerns about the misuse of insolvency laws in India.
The NCLT determined that the application for insolvency was not just a standard financial dispute but part of a broader scheme involving collusion between Experts Realty and Logix Infrastructure. The tribunal noted that the entire situation appeared to be orchestrated, suggesting that the insolvency process was being exploited for purposes other…
