Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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NCLT Admits Insolvency Plea Over ₹98 Crore Debt Arising from Inter-Corporate Loan Default
Corporate Law & GovernanceInsolvency & Bankruptcy Code
The NCLT has admitted an insolvency plea over a ₹7 crore debt arising from an "inter-corporate loan default." The tribunal’s decision was based on the fact that the loan, which was given by one company to another, qualified as a financial debt under the Insolvency and Bankruptcy Code (IBC). The ruling provides a clear precedent on the treatment of such loans under the IBC and empowers creditors to initiate insolvency proceedings to recover their dues.
