Fact of the Case:

M/s Neeta Chemicals (I) Private Limited (‘Corporate Applicant’) filed an application under section 10 of the Insolvency and Bankruptcy Code (IBC), 2016 before NCLT which was dismissed and awarded cost on following lines.

  • that loan was availed by the Corporate Debtor in the year 2009-10, which was classified as NPA by the bank. SARFASEI proceedings were initiated and at advanced stage of E-auction, against which applicant had filed a suit challenging the proceedings before concerned judicial authority. NCLT found that the application was filed only to hold the proceedings of SARFAESI. The Corporate Debtor had not taken any steps to clear even a part of loan and surprisingly and mischievously trying to deny the loans in question and present application was filed on frivolous and mischievous grounds with a malafide intention and un-clean hands to take advantage of provisions of IBC, 2016.
  • cost of Rs 10 lakhs was imposed on the corporate debtor.

Subsequently, corporate debtor filed appeal with NCLAT.

Question of Law:

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