NCLAT rejects NCLT order, directs fresh hearing in Culver Max insolvency petition against fintech firm

Core Viewpoint - The National Company Law Appellate Tribunal (NCLAT) has overturned a previous order by the National Company Law Tribunal (NCLT) that dismissed Culver Max Entertainment's insolvency petition against a fintech firm, allowing the broadcaster to rectify application defects and have the case heard again [1][4]. Group 1: Tribunal's Decision - NCLAT directed the NCLT to provide Culver Max an opportunity to correct defects in its application, which was not previously granted [2][6]. - The appellate tribunal emphasized that the NCLT's dismissal of the application was illegal and required rectification [3][6]. Group 2: Background of the Case - The NCLT had dismissed Culver Max's Section 9 application on 30 April 2024, citing the absence of a resolution ratifying the action and lack of Board of Directors' decision documentation [5]. - Culver Max argued that the NCLT should have allowed time to file a new Board Resolution as per Section 9(5)(ii) of the Insolvency & Bankruptcy Code [6][7]. Group 3: Legal Provisions - The law mandates that before rejecting an application, the tribunal must notify the applicant, allowing up to seven days to correct any defects [7][8].