The NCLAT, in its decision dated July 3, 2019,1 has held that a foreign decree which was pending execution in India has not yet crystallized into "debt payable in law" and, therefore, the foreign decree holder could not rely on such a decree (which was passed ex-parte for default of appearance of the corporate debtor) for initiating proceedings under the IBC.
1 Peter Johnson John v. KEC Industries Limited, Company Appeal (AT) (Insolvency) No. 188 of 2019 (NCLAT).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.