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Informative

IBC Proceedings are Not meant for recovery of money with respect to Solvent companies: NCLT

Update / Judgement Date

19 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Corporate Law & GovernanceInsolvency & Bankruptcy Code

The NCLT has ruled that "IBC proceedings are not meant for the recovery of money" for "solvent companies." The tribunal's decision clarifies a key procedural aspect of the IBC. The ruling reinforces the principle that the IBC is a tool for insolvency resolution and not for debt recovery.