IBC Proceedings U/S 7 Unjustified as Debt and Default Not Established

Santoshi Finlease Private Limited. Vs State Bank of India (NCLAT Delhi) NCLAT Delhi held that in absence of both disbursements directly to Corporate Debtor and default, attempt to invoke proceedings u/s. 7 of IBC unsustainable. Thus, since CIRP was fraudulent and malicious, dismissal u/s. 65 of IBC upheld. Facts- The Appellant, M/s Santoshi Finlease Pvt Ltd, filed a Section 7 Application under the Insolvency and Bankruptcy Code (IBC), 2016, against the Corporate Debtor – M/s Mothers Pride Dairy India Pvt Ltd for non- payment of a loan amount of INR 4,89,28,694/- disbursed from 08.07.2019...