In Brief
A jute trader sought to initiate corporate insolvency resolution against a mill company for recovery of old dues. The National Company Law Appellate Tribunal rejected the trader's application because defects were not cured within a strict seven-day deadline, holding this period mandatory. The Supreme Court reversed, holding that the seven-day period for removing defects is directory, not mandatory. While the Code emphasizes expedition, pre-adjudication procedural requirements cannot be treated as mandatory where valid reasons exist for delay. However, applicants who miss the deadline may reffile with an affidavit explaining the delay, which the adjudicating authority may accept if satisfied of sufficient cause."
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