NCLAT Clarifies that Transferred Winding-Up Petitions Must Independently Satisfy Section 9 IBC Requirements

The National Company Law Appellate Tribunal (NCLAT), Delhi, has held that when a winding-up petition filed in a High Court is transferred to the National Company Law Tribunal (NCLT) and treated as a Section 9 Insolvency & Bankruptcy Code (IBC) application, the NCLT cannot admit it automatically.

The tribunal must independently examine whether the petition meets the legal requirements under Section 9 of the IBC, including the statutory threshold of Rs. 1 Crore.

Simply because the High Court admitted the winding-up petition earlier does not mean the Section 9 application will be admitted without satisfying current IBC criteria.

[Navin Ashokkumar Aswani v. Falcon Industries & Rajendra Sanghi]