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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Existence of Financial Debt and Corresponding Default is a Sine Qua Non for Initiating Proceedings u/s 7 of IBC: NCLAT
Insolvency & Bankruptcy CodeOther Legal Matters
The NCLAT has ruled that the existence of a financial debt and corresponding default is a sine qua non for initiating proceedings under Section 7 of the IBC. The tribunal emphasized the need for clear evidence of debt and default. This decision reinforces the requirements for initiating insolvency proceedings. The ruling clarifies the scope of Section 7.
