Insufficiently Stamped Agreements Do Not Present A Bar To Application U/S 7 Of IBC: NCLT Bengaluru

The NCLT (National Company Law Tribunal), Bengaluru, held that insufficiently stamped agreements do not present a bar to an application under Section 7 of the IBC (Insolvency and Bankruptcy Code). Section 7 allows financial creditors to initiate the corporate insolvency resolution process. The tribunal reasoned that the admissibility of an insolvency application should not be solely contingent on the proper stamping of the underlying agreement, and the merits of the debt claim should be considered.