Admissibility of Debt u/s 9 of IBC: NCLAT Quashes NCLT’s Rejection of CIRP Proceedings

The National Company Law Appellate Tribunal (NCLAT) has quashed the National Company Law Tribunal’s (NCLT) rejection of Corporate Insolvency Resolution Process (CIRP) proceedings. The case involved the admissibility of debt under Section 9 of the Insolvency and Bankruptcy Code (IBC). NCLAT ruled that the NCLT had incorrectly rejected the application, emphasizing that the debt involved met the criteria for initiating CIRP. The decision clarifies the conditions for admitting debts under IBC, ensuring that creditors are not unjustly denied the right to initiate insolvency proceedings when valid claims exist.