Application u/s 7 IBC can be Filed to Claim Remaining Amount after Selling Pledged Shares: NCLAT

The NCLAT has clarified that an application under Section 7 of the IBC can be filed to claim the remaining amount after selling pledged shares. This ruling arises from a case where the assets had been sold to recover dues, and the creditor sought to claim the remaining balance. The tribunal emphasized that creditors have the right to file for insolvency proceedings under the IBC to recover their outstanding dues if the sale of assets does not cover the entire amount owed. This decision strengthens creditor rights in insolvency cases and provides clarity on the interpretation of the IBC.