NCLT recalls its own admission order for Rhythm Infra Properties' CIRP after discovering the financial creditor's claim was only ₹84.47 lakhs, below the ₹1 crore statutory threshold.
The tribunal imposes a ₹5 lakh penalty on Samskar Financial Services for abuse of process and directs it to pay all CIRP costs.
The original CIRP was initiated in December 2024 based on a claimed ₹1 crore debt, but the verified claim during the process revealed the lower amount.
All CIRP actions are declared null, the moratorium is lifted, and management is returned to the suspended board of directors.