The National Company Law Tribunal [NCLT] held that section 10A IBC which dealt with the suspension of initiation of corporate insolvency resolution process shall even apply to cases which are pending before the tribunal on or before March 25th.
The NCLT concluded that the ordinance of June 5, 2020 will be applicable retrospectively to the defaults arising on or after March 25th, 2020, the court also stated that in the present case which was in front of the bench had arisen on April 30th, the NCLT held that the instant case was under the ambit of section 10A. The main insolvency plea was accordingly rejected.
The corporate debtor was represented by senior advocate Goal Jain & ors and Operational Creditor were represented by senior Advocate Arvindh Pandian & ors.
(By – Siddharth Addy)