The National Company Law Appellate Tribunal (NCLAT), New Delhi, has delivered a detailed and consequential judgment holding that shareholders can be “aggrieved persons” under Section 61 of the Insolvency and Bankruptcy Code (IBC) when alleging collusive and fraudulent initiation of the corporate insolvency resolution process (CIRP).
The ruling not only quashes the CIRP against Techindia Nirman Ltd. but also imposes a penalty of ₹25 lakh on Agri-Tech (India) Ltd., the financial creditor, under Section 65 of the Code.
The dispute arose after Agri-Tech (India) Ltd.,(the financial creditor) a related party of Techindia Nirman Ltd., (the corporate debtor) filed a Section 7 petition in October 2024 claiming a …