Default occurred beyond outer limit of S.10A of IBC, Insolvency Application can be files Afresh: NCLAT

The NCLAT (National Company Law Appellate Tribunal) has ruled that if a default occurred "beyond the outer limit of Section 10A of IBC," an insolvency application can be filed afresh. Section 10A prohibits the filing of insolvency applications for defaults occurring during a specific pandemic-related period. The NCLAT's decision clarifies that if a default occurs outside this protected window, a fresh application can be initiated, even if a previous one was barred. This interpretation ensures that legitimate defaults falling outside the moratorium period can still trigger insolvency proceedings.