Insolvency Dilemmas: NCLAT’s Verdict on Section 185 Compliance in CIRP Claims

AVJ Heightss Apartment Owners Association Vs India Infoline Finance Ltd. (NCLAT Delhi)

NCLAT Delhi, in the matter of AVJ Heights Apartment Owners Association Vs. India Infoline Finance Ltd have dealt with the question where financial contract which was not in compliance of certain provisions of the Companies Act, 2013 can be admitted as a claim under Corporate Insolvency Resolution process (CIRP)?

The facts were as follows:

• AVJ Developers (India) Pvt. Ltd (hereinafter called Company/Corporate debtor) obtained 3 loans amounting approximately to Rs.131 Crores from India Infoline Finance Ltd (herein after called lender). However, the Company was not able to repay the same.

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