Culver Max insolvency plea against fintech firm: NCLAT quashes NCLT order, directs fresh hearing

Core Viewpoint - The NCLAT has set aside the NCLT's order rejecting Culver Max Entertainment's insolvency plea, emphasizing the need for the NCLT to provide an opportunity for rectification of application defects [1][2][3] Group 1: NCLAT's Decision - The NCLAT remanded the case back to the NCLT for a fresh hearing, stating that the NCLT should have allowed Culver Max to rectify the application defects [1][3] - The NCLAT found the NCLT's order from April 30, 2024, to be illegal due to the lack of opportunity given to Culver Max to address the application issues [2][8] - The NCLAT instructed that the rectification process should ideally be completed within two months [6] Group 2: Background of the Case - The NCLT had dismissed Culver Max's Section 9 application against Rechargekit Fintech, citing the absence of a Board resolution ratifying the action [7][10] - Culver Max argued that the NCLT should have allowed time for filing a fresh Board Resolution as per Section 9(5)(ii) of the Insolvency & Bankruptcy Code [8][10] - The NCLAT agreed with Culver Max's contention, stating it was the NCLT's duty to notify the appellant to rectify the application defects [8][10]