Hyderabad, May 7 -- The National Company Appellate Tribunal (NCLAT) has upheld the decision of the Adjudicating Authority (NCLT, Hyderabad), admitting a bankruptcy application filed under Section 122(1) of the Insolvency and Bankruptcy Code (IBC), 2016.

The tribunal also reaffirmed that the penalty imposed by the Securities and Exchange Board of India (SEBI) qualifies as an 'excluded debt.'

As per Section 79(15)(a) of the IBC, this penalty will not be covered under the moratorium imposed during the bankruptcy proceedings.

The appellant, a personal guarantor to a company, had filed for insolvency resolution under Section 94(1) of the IBC.

The NCLT had initially appointed a Resolution Professional to devise a repayment plan, which was l...