Petition u/s 7 of IBC Can be Admit on Default Committed Prior To S.10A Period: NCLAT

The National Company Law Appellate Tribunal (NCLAT) ruled that a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) can be admitted even for defaults committed before the suspension of Section 10A. The case involved a company that had defaulted on its debt payments before the moratorium under Section 10A, which temporarily suspended the initiation of insolvency proceedings. The NCLAT held that the default occurred before the suspension and thus could still be addressed under the IBC framework. This ruling is important because it clarifies the scope of Section 10A and reinforces the ability of creditors to initiate insolvency proceedings even for pre-suspension defaults.