18-July-2024
Insolvency
 
IBC not recovery mechanism; dismisses plea against United Telecoms: NCLAT
18-Sep-2023

The Insolvency & Bankruptcy Code is "not a recovery mechanism", observed the National Company Law Appellate Tribunal, while dismissing a plea against United Telecoms Ltd filed by one of its operational creditors. This is the second such observation from the Chennai bench of the insolvency appellate tribunal this month, after declining to entertain the petition from operational creditors. Earlier, it had refused to entertain an insolvency petition against Wipro Ltd after observing that the bankruptcy law cannot be used as a means to recover debt against solvent companies.

News Source:- https://www.business-standard.com/companies/news/ibc-not-recovery-mechanism-dismisses-plea-against-united-telecoms-nclat-123091700185_1.html