The National Company Law Appellate Tribunal (NCLAT) has overturned a National Company Law Tribunal (NCLT) ruling that had dismissed Culver Max Entertainment’s insolvency petition against a fintech company, directing that the matter be heard afresh. The decision gives the broadcaster another opportunity to pursue the case after curing procedural shortcomings cited earlier.
Culver Max Entertainment had approached the NCLT under Section 9 of the Insolvency and Bankruptcy Code seeking initiation of corporate insolvency proceedings. However, the petition was rejected by the tribunal on the grounds that it lacked proper authorisation, including deficiencies related to the supporting board resolution.
According to media reports, the NCLAT observed that the adjudicating authority should have granted the petitioner an opportunity to rectify defects in its filing instead of dismissing the plea at the threshold. The appellate tribunal held that rejecting the petition without allowing corrections amounted to a procedural lapse.
The case has now been remanded to the NCLT for a fresh hearing, with directions to allow Culver Max to address the deficiencies and for the matter to be decided on merits. The ruling reinforces the principle that insolvency petitions should not be dismissed on technical grounds without affording parties a reasonable chance to comply with procedural requirements.
