Technical objections like insufficient stamp duty cannot defeat insolvency proceedings when debt and default proven: NCLAT

The NCLAT clarified that technical objections, such as alleged insufficient stamp duty on debt instruments, cannot block insolvency proceedings if debt and default are proven. The tribunal emphasised substance-over-form and directed adjudicating authorities to focus on material facts rather than procedural technicalities. The ruling is significant for creditors and resolution professionals, reducing the scope of dilatory tactics by debtors. Legal strategy under IBC should prioritise clear evidence of debt and default to ensure timely initiation and successful progression of insolvency proceedings, setting a precedent for handling procedural objections in CIRP.