Kotak Mahindra Bank Ltd. (Financial Creditor) filed a Section 7 application under the IBC against Kunal Structure India Pvt. Ltd. (Corporate Debtor) for a financial debt. The Corporate Debtor contended that it had significant arbitral awards against government entities, exceeding the claimed debt, and that execution proceedings for these awards were pending. Initially, the NCLT kept the Section 7 application in abeyance. Subsequently, a split verdict occurred between the Judicial and Technical Members of the NCLT, leading to a reference to a third Member. The third Member opined in favor of admitting the Corporate Debtor into CIRP, which the Corporate Debtor challenged in the present appeal before the NCLAT.

Kotak Mahindra Bank Ltd. (Financial Creditor) filed a Section 7 application under the IBC against Kunal Structure India Pvt. Ltd. (Corporate Debtor) for a financial debt. The Corporate Debtor contended that it had significant arbitral awards against government entities, exceeding the claimed debt, and that execution proceedings for these awards were pending. Initially, the NCLT kept the Section 7 application in abeyance. Subsequently, a split verdict occurred between the Judicial and Technical Members of the NCLT, leading to a reference to a third Member. The third Member opined in favor of admitting the Corporate Debtor into CIRP, which the Corporate Debtor challenged in the present appeal before the NCLAT.