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Informative

NCLAT Upholds Rejection Of Section 7 Application As Default Amount Was Below 1 Crore; Sets Aside Penalty U/S 65

Update / Judgement Date

30 Sept 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderInsolvency & Bankruptcy Code

The NCLAT upholds the rejection of a Section 7 application due to the default amount being below ₹1 crore and sets aside the penalty under Section 65. This ruling clarifies thresholds for initiating insolvency proceedings.