SC Says Affidavit Error Cannot Defeat Section 7 IBC Petition
Judgment dated 24.11.2025 of the Supreme Court in Civil Appeal No.11766 of 2025 of Livein Aqua Solutions Private Limited Vs. HDFC Bank Limited
On 4.8.2019, the loan account of the appellant was classified as non-performing asset. Section 7 IBC petition was filed by the Bank in Form 1 appended to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, in consonance with Rule 4(1). However, neither rule 4(1) nor Form 1 requires the said application to be supported by an affidavit.
Rule 34(4) of the Company Law Tribunal Rules, 2016, require affidavit in Form No. NCLT.6. as verification of petition before NCLT.
In this case, the application under section 7 IBC was verified on 26.7.2023 and the affidavit was deposed on 17.7.2023.
In that context, the question was whether the application is liable to be rejected at the threshold on that ground alone.
HELD that mere filing of a “defective affidavit” in support of an application would, however, not render the very application non est on the ground that it is neither an incurable nor a fundamental defect.
Defects in Section 7 IBC Application are Curable, Rules Supreme Court
