NCLAT says Interested Third Parties Must Be Heard Before CIRP Admission

Shri Sant Eknath Co-operative Sugar Factory was not a party to the Section 7 proceedings against Sachin Ghayal Sugar, butclaimed that the proceedings could affect its factory and the rights of its 18,000 farmer-members. NCLAT directed the NCLT to first decide the Section 60(5) application and only thereafter proceed to decide the Section 7 petition on merits.