NCLAT Clarifies Threshold for IBC Section 7 Claims & Limits on Section 65 Penalty

Tanay Securities & Services Pvt. Ltd. & Anr. Vs Mittal Soya Protein Pvt. Ltd. (NCLAT Delhi) NCLAT  held that small disputed amounts below ₹1 crore do not justify Section 7 proceedings or penalties under Section 65 when debt is substantially repaid. The appeal arose against the NCLT Indore Bench order, which dismissed a Section 7 application filed by the financial creditor claiming a default of Rs. 4,08,78,824/- by the corporate debtor. The adjudicating authority found that the corporate debtor had substantially repaid the claimed debt, except for Rs. 19,19,500/-, which was below the...