NCLT admitted a Section 7 insolvency petition after re-filing, citing financial debt over ₹1 crore and valid procedural compliance, leading to appointment of interim resolution professional.
Section 7 Petition Admitted Post-Rectification; IRP Appointed
The National Company Law Tribunal (NCLT) admitted a Section 7 petition under the Insolvency and Bankruptcy Code (IBC), following re-filing after initial registry defects. The corporate debtor had defaulted on financial debt exceeding the statutory threshold of ₹1 crore, satisfying the criteria for admission.
The original petition, filed on 19 June 2025, was withdrawn due to technical deficiencies but was refiled with the Tribunal’s leave. The NCLT held that the re-filing preserved the cause of action and that the delay did not prejudice the debtor. An Interim Resolution Professional (IRP) was appointed immediately upon admission.
For practitioners: Registry defects are curable, and courts may grant liberty to refile. Ensuring timely correction of procedural flaws—such as incomplete documentation or jurisdictional errors—is critical. This case supports the principle that bona fide petitions should not be dismissed solely on technical grounds.
Citations
- Section 7, Insolvency and Bankruptcy Code
