Case Law Analysis
|National Company Law Appellate Tribunal
Section 7 IBC | Without Prejudice Deposit Does Not Dispense With Adjudication Of Debt And Default : NCLAT
The NCLAT held that a without-prejudice deposit cannot substitute the mandatory adjudication of debt, default, and maintainability under Section 7 IBC. Setting aside an NCLT order that closed proceedings upon deposit, the tribunal ruled such deposits do not dispense with the creditor's right to a full determination of statutory prerequisites for CIRP initiation.