India's appellate tribunal, the National Company Law Appellate Tribunal (NCLAT), has set aside a National Company Law Tribunal (NCLT) order that rejected Culver Max Entertainment's insolvency petition against an Odisha-based fintech firm, offering relief to the broadcaster, which was formerly known as Sony Pictures Network India.NCLAT passed the case back to the Cuttack bench of NCLT, directing the court to hear the matter afresh.The tribunal also observed that NCLT should have at least given Culver Max an ...

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]