Topic

Section 7

5 articlesLatest September 2026
Section 7 IBC | Without Prejudice Deposit Does Not Dispense With Adjudication Of Debt And Default : NCLAT
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.

Section 7 Arbitration Act | Terse 'Arbitration Subject to Mumbai Jurisdiction' Clause Valid Sans Mandatory Language or Procedure : Bombay HC
Case Law Analysis
|Bombay High Court

Section 7 Arbitration Act | Terse 'Arbitration Subject to Mumbai Jurisdiction' Clause Valid Sans Mandatory Language or Procedure : Bombay HC

The Bombay High Court held that the clause 'Arbitration Subject to Mumbai Jurisdiction' in a purchase order constitutes a valid arbitration agreement under Section 7, even though it lacks mandatory referential language or procedural machinery. The court appointed a sole arbitrator under Section 11(6), affirming that minimalist clauses can satisfy the statutory threshold for arbitration agreements in commercial contracts.

Section 7 IBC | Continuing Default Creates Fresh Cause of Action Under Section 22 Limitation Act; Winding-Up Pendency No Bar to Admission : NCLAT
Case Law Analysis
|National Company Law Appellate Tribunal

Section 7 IBC | Continuing Default Creates Fresh Cause of Action Under Section 22 Limitation Act; Winding-Up Pendency No Bar to Admission : NCLAT

The NCLAT upheld Section 7 admission, holding that continuing failure to deliver possession generates a fresh cause of action daily under Section 22 Limitation Act. Pendency of High Court winding-up proceedings does not bar NCLT from admitting a corporate debtor. Homebuyers' claims thus survive limitation through continuing default, and IBC initiation isn't stalled by parallel liquidation petitions.

Section 7, Family Courts Act, 1984 | Civil Courts Barred from Deciding Matrimonial Status Declarations Where Family Court Has Jurisdiction : Gauhati HC
Case Law Analysis
|Gauhati High Court

Section 7, Family Courts Act, 1984 | Civil Courts Barred from Deciding Matrimonial Status Declarations Where Family Court Has Jurisdiction : Gauhati HC

The Gauhati High Court has ruled that any suit seeking a declaration of marital status-such as validity of marriage or spousal rights-must be filed exclusively before a Family Court under Section 7 of the Family Courts Act. Civil courts lack jurisdiction even if the facts are undisputed, reinforcing the Act’s intent to centralize all matrimonial disputes in specialized forums and prevent forum shopping.