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Informative

Any Default Falling Within Section 10-A of IBC Must be Excluded from Total Outstanding Debt: NCLT

Update / Judgement Date

01 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

The NCLT has ruled that any default falling within Section 10A of the IBC must be excluded from the total outstanding debt. This decision clarifies the application of Section 10A, which addresses defaults during the COVID-19 pandemic. It ensures that businesses are not unfairly penalized for pandemic-related financial distress. The ruling aims to provide relief to businesses affected by the pandemic.