The NCLT has initiated the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the IBC for a default amounting to ₹16.53 crores. A moratorium has been declared under Section 14 of the IBC.
NCLT Initiates CIRP for Significant Outstanding Amount
The National Company Law Tribunal (NCLT) has initiated the Corporate Insolvency Resolution Process (CIRP) for a default amount of ₹16.53 crores under Section 7 of the Insolvency and Bankruptcy Code (IBC). The move was prompted by acknowledgments and part-payments which extended the statutory filing period.
In accordance with the provisions of the IBC, the NCLT has also declared a moratorium under Section 14, which prohibits the recovery of any debt from the corporate debtor once the CIRP is initiated. This moratorium is critical to ensure the resolution process is not disrupted by creditor actions.
This ruling underscores the importance of timely acknowledgments and part-payments in insolvency proceedings. Practitioners should take note of how these actions can influence the opening of CIRP and the implications for creditors and debtors alike.
Citations
- In the Matter of Corporate Debtor (2026) NCLT
