R. Raghavendran while others, new NCLAT, Chennai depended up on the brand new judgment from Sarvana Around the world Holdings Ltd

From inside the Drip Money Inc. v. Concord Productions (India) P. Ltd., the newest NCLAT, Chennai stored you to definitely an initiation of your CIRP does not matter to recovery process and therefore the fresh new Adjudicating Expert at the time out of dedication on whether or not to recognize otherwise refute a credit card applicatoin around Section 7 of your Password, is not to take into account the causes towards business debtor’s default. New NCLAT, Chennai detailed that NCLT, Bangalore had acted contrary to the founded prices by permitting the fresh new corporate borrower more time to settle the obligations for the basis that business debtor got enough money and assets to repay its debt.

In Manmohan Singh Jain v. County Lender away from Asia & Some other, this new NCLAT, Chennai held one to low-mentioning of your own date away from default in the a software by the good financial creditor not as much as Area seven of the Code is not deadly towards software and on you to best crushed, the program can not be refuted because of a mere a technical impediment.