The National Company Law Tribunal, New Delhi bench comprising Chief Justice (Retd.) Ramalingam Sudhakar (President) and Avinash K. Srivatava (Technical Member) has held that a pre-existing dispute between the Financial Creditor and Corporate Debtor does not bar a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to be entertained.
The Tribunal also held that a claim of the Financial Creditor which did not form part of the Resolution Plan of the Holding/Parent Company is not extinguished because at the time of Corporate Insolvency Resolution Process (“CIRP”) of Parent Company of corporate guarantor, there was no default on the part of Corporate Debtor and hence there was no occasion to…
