The Principal Bench of National Company Appellate Tribunal (NCLAT) at New Delhi upheld CIRP admission, holding that a contractual cure period did not defer the date of default for Section 10A of the Insolvency and Bankruptcy Code, 2016 .
Default occurred when payment became due and remained unpaid, not on expiry of the grace period. As the January 2020 instalment was unpaid from 01.02.2020, the default pre-dated the Section 10A bar effective 25.03.2020.
The Appeal was filed by the Appellant against NCLT Chandigarh’s order dated 03.07.2024 in CP (IB) No.180/CHD/PB/2022, which admitted Respondents No. 2 petition under Section 7 of the IBC, 2016, initiating CIRP and appointed Respondent No.1 as Interim Resolution…