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NCLAT Clarifies Threshold for IBC Section 7 Claims & Limits on Section 65 Penalty
Case Law Details
- Case Name
- Tanay Securities & Services Pvt. Ltd. & Anr. Vs Mittal Soya Protein Pvt. Ltd. (NCLAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- NCLAT
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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...
