Insufficiently Stamped Agreements Not a Bar to Application for CIRP u/s 7 of IBC: NCLT

The National Company Law Tribunal (NCLT) ruled that insufficiently stamped agreements do not constitute a bar to the application for initiating the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The NCLT clarified that the admissibility of such agreements as evidence can be addressed separately by the relevant authorities. The primary focus at the stage of admitting a CIRP application is the existence of a financial debt and a default. This ruling aims to prevent technicalities related to stamp duty from impeding the commencement of the insolvency resolution process, thereby facilitating timely resolution of distressed assets.