Using Poor Quality Material During Construction: NCDRC Holds Builder Liable For Deficiency In Service

The NCLAT ruled that the National Company Law Tribunal (NCLT) can set aside the fraudulent initiation of the Corporate Insolvency Resolution Process (CIRP) when hearing an appeal under Section 61 of the Insolvency and Bankruptcy Code (IBC). The case involved an appeal challenging the initiation of CIRP, which the appellant claimed was based on fraudulent grounds. The tribunal held that the NCLT has the authority to annul such proceedings if they are found to be fraudulent. This decision reinforces the safeguards under IBC, ensuring that insolvency proceedings are not misused by creditors or parties seeking to initiate them for improper purposes.