NCLT declines perjury action in IBC

The National Company Law Tribunal (NCLT), New Delhi Bench-IV dismissed an application seeking initiation of perjury proceedings against an operational creditor. 

The Tribunal held that prosecution for perjury is an extraordinary remedy reserved for exceptional cases involving deliberate falsehood that materially affects judicial proceedings. 

Since the alleged omission related only to adjustment of part-payments, was considered during adjudication of the insolvency petition and did not result in any beneficial order being obtained, the statutory requirements for initiating perjury proceedings were not satisfied.