CIRP initiation for recovery amounts to misuse of Insolvency Framework: SC

Anjani Technoplast Ltd. Vs Shubh Gautam (Supreme Court of India) The Supreme Court considered an appeal filed under Section 62 of the Insolvency and Bankruptcy Code, 2016 (IBC), challenging an order of the National Company Law Appellate Tribunal (NCLAT), which had directed the admission of a Section 7 insolvency application against the appellant. The dispute originated from loans advanced by the respondent to the appellant in 2010, along with agreed interest terms. The appellant issued cheques as security, which were dishonoured, leading to proceedings under the Negotiable Instruments Act. The...