NCLAT: Pendency of Suit Against Financial Creditor No Bar for Starting Proceedings under Sec 7 IBC - (14 Oct 2019)
INSOLVENCY
National Company Law Appellate Tribunal has ruled that pendency of a suit filed by the corporate debtor against a financial creditor cannot restrain it from starting insolvency proceedings under Section 7 of Insolvency and Bankruptcy Code, 2016. The Tribunal also reiterated that pre-existing dispute cannot be a subject matter of Section 7 although it may be relevant under Section 9 of IBC.
Tags : NCLAT FINANCIAL CREDITOR
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