NCLAT: Section 7 IBC Plea Cannot Be Rejected Without Chance To Cure Defects

The National Company Law Appellate Tribunal (NCLAT) has ruled that neither the Registry nor the NCLT can dismiss a Section 7 IBC petition (initiation of corporate insolvency) without giving the petitioner an opportunity to rectify defects in the supporting affidavit.

The court emphasized procedural fairness and ensures that technicalities do not obstruct legitimate claims.

The NCLAT directed the NCLT to allow amendments to cure defects, reinforcing the principle of justice over hyper-technical objections.