The Allahabad Bench of the National Company Law Tribunal (NCLT) on 27 October admitted a Section 7 petition filed by Sital Leasing and Finance Limited against Sybly Industries Limited, initiating the corporate insolvency resolution process (CIRP).
A Bench comprising Judicial Member Praveen Gupta and Technical Member Ashish Verma observed:
“The mere assertion that the Corporate Debtor possesses market receivables or is willing to repay the outstanding dues at a later date cannot, in the absence of an established arrangement accepted by the Financial Creditor, extinguish or negate a default that has already occurred.”
The financial creditor filed the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC),…