NCLAT allows appeal of Canara Bank: Petition under Section 7 of IBC has to be admitted when debt and default are satisfied

The National Company Law Appellate Tribunal (NCLAT) allowed Canara Bank's appeal, emphasizing that a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) must be admitted if the debt and default are clearly established. Canara Bank had filed an application for initiating Corporate Insolvency Resolution Process (CIRP) against a debtor, which was initially rejected by the National Company Law Tribunal (NCLT). The NCLAT overruled the NCLT’s decision, highlighting that the evidence provided sufficiently demonstrated the existence of debt and default. This ruling underscores the mandatory nature of admitting insolvency petitions when the criteria of debt and default are met, aiming to reinforce the efficiency and effectiveness of the IBC.