In Brief
In Catalyst Trusteeship Ltd. v. Ecstasy Realty Pvt. Ltd., the Supreme Court held that when a financial creditor applies under Section 7 of the Insolvency Code to initiate insolvency, the tribunal need only verify that a financial debt exists and default has occurred. The Court rejected arguments that informal restructuring negotiations created a binding moratorium preventing insolvency proceedings. The Court clarified that contractual modifications must follow the procedure prescribed in the contract itself, not merely from unilateral discussions. Since the debt and default were undisputed, the Court set aside lower court orders and directed admission of the insolvency petition.
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