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In a significant development, the Supreme Court on Thursday (April 25) held that debt would be treated as an operational debt only if the claim subject matter of the debt has some connection or...
India Business News: The Insolvency & Bankruptcy Code (IBC) is "not a recovery mechanism", observed the National Company Law Appellate Tribunal (NCLAT), while dismissing a
This is the second such observation from the Chennai bench of the insolvency appellate tribunal this month, after declining to entertain the petition from operational creditors.
Again, while rejecting a plea against United Telecoms last week, a two-member bench comprising justices M Venugopal and Shreesha Merla said: "Time and again, the apex court in a catena of judgments held that the IBC is not a 'recovery mechanism'.
The National Company Law Appellate Tribunal has dismissed a plea against United Telecoms Ltd, stating that the Insolvency & Bankruptcy Code is not a recovery mechanism. The Chennai bench had also refused to entertain a petition from operational creditors. The tribunal upheld the order by the Bengaluru bench of the National Company Law Tribunal, which had dismissed the plea moved by an operational creditor claiming a default of Rs 8.46 crore against United Telecoms Ltd.