NCLT Rejects NKGSB Bank's KSM Multitrade Insolvency Plea

NCLT Mumbai Bench rejected NKGSB Co-operative Bank's Section 7 insolvency application against KSM Multitrade LLP.
The tribunal ruled the application was barred under Section 10A of the IBC as the default date of 31.10.2020 fell within the COVID-19 moratorium period.
The financial creditor claimed a default of ₹7.55 crore, comprising ₹4.64 crore principal and ₹2.91 crore interest at 11% p.a.
The Corporate Debtor argued the application was not maintainable as the debt was crystallized before the 10A period and the arbitral award did not create a fresh cause of action.