S.10A of IBC cannot be considered Valid Defence on Establishment of Valid Default Date: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has ruled that Section 10A of the Insolvency and Bankruptcy Code (IBC) cannot be considered a valid defense once a valid default date is established. The case involved a corporate debtor who argued that the default occurred during the suspension period under Section 10A, which provides temporary relief from insolvency proceedings. The NCLAT found that the default date was established before the suspension period, making Section 10A inapplicable. The judgment clarifies the scope of Section 10A and reinforces the need for timely resolution of insolvency cases. This decision highlights the importance of adhering to statutory timelines and ensuring that insolvency proceedings are not unduly delayed.