NCLAT Sets Aside NCLT Order, Remands Culver Max’s Insolvency Plea Against Fintech Firm

The National Company Law Appellate Tribunal (NCLAT) has overturned a National Company Law Tribunal (NCLT) order that dismissed Culver Max Entertainment’s Section 9 insolvency petition against Odisha-based Rechargekit Fintech.

The appellate tribunal held that the NCLT erred in rejecting the plea outright without granting Culver Max an opportunity to rectify procedural defects in its application under Section 9(5)(ii) of the Insolvency & Bankruptcy Code. 

Setting aside the April 30, 2024 order, NCLAT remanded the matter to the NCLT for fresh consideration, directing that the petitioner be allowed to cure defects before the insolvency plea is examined on merits.