The National Company Law Appellate Tribunal on Thursday granted relief to Sporta Technologies, the parent company of Dream11, freeing it from the corporate insolvency resolution process (CIRP) rejecting a petition by Reward Solutions.
NCLAT concluded that the default date for the debt squarely fell within the timeline of Section 10A of the Insolvency and Bankruptcy Code, 2016.
Section 10 A prohibits the initiation of CIRP for default occurring between March 25, 2020 and March 25 2021 as the legislature intended to protect the firms hit by Covid. NCLAT said, “NCLT had committed an error in admitting Section 9 CIRP application by the impugned order dated February 9, 2024,” and set aside the February order.
Reward Solutions had filed an initiation of CIRP petition before NCLT, Mumbai, claiming a default of ₹7.61 crore by Dream11 regarding a lease and licence agreement executed between Reward Solutions and Sporta Technologies. Dream11 was admitted into insolvency by NCLT in February, prompting Bhavit Sheth, co-founder and COO of Dream11, to approach NCLAT.
Source: Economic Times