NCLT has Discretion to not admit CIRP Application despite default by Corporate Debtor: SC

Vidarbha Industries Power Limited Vs Axis Bank Limited (Supreme Court of  India) The IBC is intended to consolidate and amend the laws with a view to reorganize Corporate Debtors and resolve insolvency in a time bound manner for maximization of the value of the assets of the Corporate Debtor. The title “Insolvency and Bankruptcy Code” makes it amply clear that the statute deals with and/or tackles insolvency and bankruptcy. It is certainly not the object of the IBC to penalize solvent companies, temporarily defaulting in repayment of its financial debts, by initiation of CIRP. Section 7(5...