Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Company’s Financial Default Clearly Established and Above Threshold u/s 4(1) of IBC: NCLT Admits Plea for Insolvency
Corporate Law & GovernanceInsolvency & Bankruptcy Code
The NCLT has admitted a plea for insolvency, ruling that a company's "financial default is clearly established" and is above the threshold under Section 41 of the IBC. The tribunal's decision provides a significant victory for the operational creditor. The ruling reinforces the principle that a company that is in default can be taken into insolvency.
