#Section 7 IBC

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.

NCLAT rules that interest on inter-corporate deposits must be included in calculating the financial debt threshold under Section 5(8) of the Insolvency and Bankruptcy Code, 2016. This decision overturns NCLT's exclusion of interest based solely on TDS deductions, impacting creditors' eligibility for initiating CIRP.

NCLAT holds that disbursements made into unauthorized accounts through fraudulent means cannot be classified as financial debt under the Insolvency and Bankruptcy Code, 2016. The ruling bars initiation of Corporate Insolvency Resolution Process (CIRP) where loan agreements lack valid authorization, reinforcing the doctrine of indoor management in financial transactions.

The NCLAT has ruled that a welfare association can initiate corporate insolvency proceedings under Section 7 of the IBC by submitting affidavits from 98 out of 152 homebuyers, even if nine affidavits contain minor discrepancies. This clarifies that procedural imperfections do not nullify financial creditor status when the core authorization and identity verification are intact, empowering homebuyer collectives to act collectively under the IBC.

The NCLAT has ruled that a financial creditor may initiate Corporate Insolvency Resolution Process under Section 7 of the IBC solely on the basis of a loan recall triggered by a Material Adverse Change clause, even if the debtor challenges the recall through arbitration. This clarifies that MAC-based defaults are actionable under IBC without waiting for arbitration outcomes, strengthening creditors' ability to act swiftly on contractual breaches that undermine financial viability.

Supreme Court holds that unilateral negotiations with one debenture holder cannot alter DTD terms; financial default established when statutory procedures for modification are unmet.

Supreme Court holds that unimplemented restructuring proposals cannot reset default date under Section 7 IBC; admission requires only proof of financial debt and default.

Supreme Court holds that joint insolvency petitions against interlinked real estate developers are maintainable and threshold of 100 allottees is assessed as of petition filing date.