The National Company Law Appellate Tribunal (NCLAT) upheld the order of the Indore Bench of the National Company Law Tribunal (NCLT) rejecting a Section 7 application filed, after observing that the alleged default amount was below the statutory threshold of Rs. 1 crore under the Insolvency and Bankruptcy Code, 2016. The appellate tribunal set aside the penalty imposed under Section 65 of the Code.
Tanay Securities & Services Pvt. Ltd., the financial creditor, had filed an application under Section 7 of the Code before the NCLT, claiming a financial debt of Rs. 4.08 crore and alleging default by the corporate debtor.
The NCLT, after hearing both sides, observed that the corporate debtor had substantially repaid the…