NCLAT Overturns NCLT’s Decision in Culver Max Insolvency Case

NCLAT overturned an NCLT order dismissing Culver Max Entertainment's insolvency plea against Rechargekit Fintech. NCLT had dismissed it due to a lack of board resolution. NCLAT remanded the case back to NCLT for reconsideration, urging them to allow Culver Max to correct application defects.

In a significant legal development, the National Company Law Appellate Tribunal (NCLAT) has reversed an earlier ruling by the National Company Law Tribunal (NCLT) concerning Culver Max Entertainment's insolvency plea.

The NCLT had previously dismissed an application filed by Culver Max against the Odisha-based fintech firm, Rechargekit, on grounds of procedural lapses regarding board resolutions. However, NCLAT found that the company had not been given the chance to rectify these deficiencies, leading to the case being remanded.

The appeal ruling emphasizes procedural fairness, instructing NCLT to allow Culver Max to address these issues within two months, ensuring the matter is judged on its substantive merits rather than technicalities.

(With inputs from agencies.)