The National Company Law Appellate Tribunal (NCLAT) New Delhi upheld an admission order under section of the Insolvency and Bankruptcy Code, 2016 (IBC) against Supertech Realtors Pvt. Ltd. and dismissed an appeal filed by Ram Kishore Arora, its suspended director.
A bench comprising Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) observed that once debt and default are established, the adjudicating authority is bound to admit the application and cannot compel the lenders to enter into as settlement or accept OTS proposals.
The Tribunal held that “Reverse CIRP is a pragmatic tool evolved in limited cases, not an enforceable right. It requires lender confidence and stakeholder unanimity, both of which are…