NCLAT Set Aside section 95 order

The National Company Law Appellate Tribunal (NCLAT) set aside an order initiating insolvency proceeding against an individual under Section 95 of the Insolvency and Bankruptcy Code, 2016, after finding that the proceedings had been commenced on the basis of misrepresented jurisdictional facts. 

The Appellate Tribunal observed that the financial creditor had portrayed the individual as a personal guarantor despite the absence of any deed of guarantee or invocation thereof on record. Since the impugned order had been obtained on a factual premise that was subsequently admitted to beincorrect, the NCLAT held that the order was vitiated and void ab initio.