Introduction
In a significant ruling that reinforces the creditor-friendly framework of the Insolvency and Bankruptcy Code, 2016 (IBC), the National Company Law Appellate Tribunal (NCLAT) in Bindu Kapoor v. Sapan Mohan Garg (IRP) & Ors.[1] dismissed appeals filed by Bindu Kapoor, suspended director of Bliss Abode Pvt. Ltd. and Bliss House Pvt. Ltd., and upheld the admission of insolvency proceedings against both companies.
The judgment addresses several important issues under insolvency law, including the validity of loan recall notices triggered by a “material adverse effect,” the impact of pending challenges to arbitral awards, the relationship between execution proceedings and insolvency proceedings, and the limitation period for…