Application U/S 65 Of IBC Can Be Considered Even Before Admission Of Insolvency Petition: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT) ruled that an application under Section 65 of the Insolvency and Bankruptcy Code (IBC) can be considered even before the admission of an insolvency petition. The case involved an application alleging fraudulent or malicious initiation of insolvency proceedings. The NCLAT held that such applications can be entertained at any stage to prevent abuse of the insolvency process. The tribunal emphasized the importance of addressing fraudulent practices and ensuring the integrity of the insolvency resolution process. This decision highlights the need for vigilance against misuse of insolvency proceedings and supports early intervention to address fraudulent activities.