CIRP if initiated fraudulently the same can be set aside: NCLAT Delhi

Apnaghar Builders Pvt. Ltd. Vs Intense Fitness & Spa Pvt. Ltd. & Ors. (NCLAT Delhi) NCLAT Delhi held that if CIRP is initiated fraudulently for any purpose other than the resolution of insolvency or liquidation it can be set aside. Accordingly, CIRP set aside and appeal allowed. Facts- Intense Fitness & Spa Pvt. Ltd. (Corporate Debtor)/Respondent No. 1 has alleged to have availed loan from Navayuga Engineering Company Ltd. which was assigned by it to CVR Holdings Pvt. Ltd. (Financial Creditor)/Respondent No. 2 by way of an assignment agreement dated 10.02.2020 executed between Nava...