In Brief
This appeal concerns whether the seven-day deadline for an operational creditor to cure defects in a corporate insolvency application is mandatory or merely directory. The NCLAT had held it mandatory, mandating rejection if defects were not removed in time. The Supreme Court reversed this, holding the seven-day period directory rather than mandatory. While the deadline should ordinarily be followed, exceptional extensions may be granted where the applicant shows substantial reasons in writing. The Court emphasized that procedure serves justice, not the reverse, and that strict rejection without adjudication on merits would be unjust where weighty reasons for delay exist.",
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