Petition u/s 7 of IBC cannot be barred merely because of pending consideration of OTS before...

The NCLAT has ruled that an "application under Section 7 of the IBC cannot be barred merely because of the pending consideration of an OTS" (One-Time Settlement) before lenders. This decision clarifies the legal standing of claims made by the EPFO during the corporate insolvency resolution process. The ruling, a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a company can be held responsible for the misdeeds of another person. The court's decision is a crucial reminder to all that they must be diligent in their dealings.