MSME Protections Cannot Override IBC Once Default Is Established: NCLT Mumbai

Buldana Urban Cooperative Credit Society Ltd. Vs Amar Seeds Private Limited (NCLT Mumbai) The National Company Law Tribunal (NCLT), Mumbai Bench admitted a Section 7 application filed by Buldana Urban Cooperative Credit Society Limited against Amar Seeds Private Limited for initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The financial creditor claimed a default of Rs. 24,26,03,387 as on 06.05.2025 arising from a loan facility of Rs. 18 crore sanctioned to the corporate debtor under a sanction letter dated 10.04.2023. A loan agreement...