Insufficiently Stamped Documents Only A Technical Deficiency, Not A Ground To Reject Section 7 Application Under IBC Says NCLAT

Introduction

Recently, the principal bench of National Company Law Appellate Tribunal, Delhi (“NCLAT”) vide its order dated 2^nd August 2022¹ (“Order”) dismissed an appeal filed by Mr. Praful Nanji Satra, the promoter of Satra Properties (India) Limited (“Appellant”) against Vistra ITCL (India) Limited and Ors under Section 61 of the Insolvency and Bankruptcy Code, 2016 (“IBC”). The NCLAT in the said Order has clarified that insufficiency of the stamp duty paid on a document is a mere technical deficiency.  

Facts

• Satra Properties (India) Limited (“Corporate Debtor”) proposed to issue up to 5,600 secured redeemable non-convertible debentures (“NCDs”) in favour of certain debenture holders.