Section 7(5)(a) IBC: Supreme Court rejects review plea against Vidarbha Industries judgment which held NCLT power to admit CIRP discretionary

The Court was of the view that the observations made in the Vidarbha judgment were in the context of facts of the case and should not be interpreted as the words of statute itself.
Supreme Court and IBC
Supreme Court and IBC

The Supreme Court recently refused to review its judgment in Vidarbha Industries Power Ltd. v. Axis Bank Ltd. (2022), which had held that power of the National Company Law Tribunal (NCLT) to admit an application for initiation of the corporate insolvency resolution process (CIRP) by a financial creditor under Section 7(5)(a) of the Insolvency and Bankruptcy Code, is discretionary and not mandatory [Axis Bank Ltd. v. Vidarbha Industries Power Ltd.].

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