Adjudicating Authority Must Consider Application U/S 65 Of IBC On Merits When Allegations Of Malicious Initiation Of CIRP Are Raised: NCLAT

The NCLAT has ruled that an "adjudicating authority must consider an application under Section 65 of the IBC on merits" when "allegations of malicious initiation of CIRP" are "raised by stakeholders." The ruling is a significant step towards a more transparent and less intrusive tax environment, is aimed at promoting tax compliance while being sensitive to the practical difficulties faced by businesses. This is a crucial reminder to all businesses that they must be diligent in their dealings.