In a recent ruling, the National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal filed by Santoshi Finlease Private Limited, upholding a penalty of ₹10 lakh imposed by the National Company Law Tribunal (NCLT) for filing a malicious and fraudulent insolvency petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The case, which involved allegations of collusion and misuse of the insolvency process, has drawn attention to the misuse of the IBC for ulterior motives.
Background of the Case
The dispute arose when Santoshi Finlease, through its director Yug Mittal, filed a Section 7 application against Mothers Pride Dairy India Pvt. Ltd. (Corporate Debtor) for non-payment of a loan…
