Filing petition u/s 7 of IBC not barred by Majority’s Consideration of Debt Restructuring with corporate debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has ruled that individual lenders within a consortium retain their independent rights to initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC), even if a broader restructuring effort is underway by the consortium. This decision clarifies that the existence of a consortium agreement or ongoing restructuring discussions does not automatically extinguish the right of an individual financial creditor to file an insolvency petition against a corporate debtor if the conditions for default are met. This ruling protects the rights of individual creditors and ensures access to the IBC mechanism despite complex lending arrangements.