In Brief
HDFC Bank filed a Section 7 IBC application to initiate corporate insolvency proceedings against Livein Aqua Solutions. The application contained a procedurally defective affidavit (incorrect verification date). NCLT issued only a general consolidated notice on its cause list rather than a specific statutory notice under Section 7(5)(b) of the IBC, and rejected the application. NCLAT upheld rejection but allowed the appeal on different grounds. The Supreme Court held: (1) procedural defects like incorrect affidavit dating are curable, not fatal; (2) Section 7(5)(b) mandates specific notice to the applicant to cure defects; general notices are insufficient; (3) the IBC overrides NCLT rules. The bank was granted 7 days to cure defects, and the matter was remanded to NCLT for fresh adjudication on merits following proper statutory procedure."
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