The share application money was given for the allotment of shares but neither were shares allotted nor was money refunded
The New Delhi bench of National Company Law Appellate Tribunal ( NCLAT) has held that share application money deposited with the corporate debtor cannot be treated as financial debt under section 5(8) of the IBC.
The appeal was filed by Muralidhar Vincom ltd under Section 61 of Insolvency and Bankruptcy Code 2016 (‘IBC’) out of the Order (‘Impugned Order’) passed by the Adjudicating Authority. By the impugned order, the Adjudicating Authority has dismissed the Section 7 application filed by the Appellant for admitting M/s Skoda (India) Pvt Ltd-Corporate Debtor into the rigours of Corporate Insolvency…
