Gandhinagar, Dec. 10 -- The National Company Law Tribunal (NCLT), Ahmedabad, has held that an insolvency application cannot be dismissed merely on allegations of fraud or malicious intent unless supported by clear and cogent evidence.

Section 65 Requires Proof of Mala Fides

While admitting insolvency proceedings against Turnrest Resources, the NCLT held that Section 65 of the Insolvency and Bankruptcy Code (IBC) applies only when fraud or mala fides are proven with evidence, not mere allegations.

Case Background

The proceedings arose from a petition filed by HDFC Bank Ltd on July 11, 2025, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Turnrest Resources for a default of Rs 30.5 crore.

The bank submi...