NCLT Dismisses Section 7 Plea as Assigned Trade Receivables Remained Operational Debt

Bank of Maharashtra Vs Ashiana Ispat Limited (NCLT Jaipur) The National Company Law Tribunal (NCLT), Jaipur Bench, considered a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Bank of Maharashtra seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Ashiana Ispat Limited for an alleged default of ₹25,75,53,710.25 arising from a Bill Discounting Facility extended through the Trade Receivables Discounting System (TReDS). The bank stated that it had sanctioned a buyer-wise Bill Discounting Facility through TReDS under a sanction let...