Facts & Background:

• The appellant was M. Suresh Kumar Reddy, the suspended director of the Corporate Debtor, M/s Kranthi Edifice Pvt. Ltd.
• Canara Bank, the successor of Syndicate Bank, was Respondent No. 1.
• On 02.04.2016, Syndicate Bank granted the Corporate Debtor a Secured Overdraft Facility of ₹12 crores and a Bank Guarantee limit of ₹110 crores, valid until 28.02.2017, comprising Overdraft Facility and Bank Guarantee facilities.
• Canara Bank filed an application under Section 7 of the IB Code before the National Company Law Tribunal, Hyderabad, asserting that as of 30.11.2019, the Corporate Debtor’s total liability amounted to ₹93,69,07,664.93.
• By an order dated 27.06.2022, the NCLT admitted the application and imposed a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016.
• The Appellant, claiming to be aggrieved, preferred an appeal before the National Company Law Appellate Tribunal, Chennai, against the NCLT order, which the NCLAT dismissed in its judgment dated 05.08.2022.
• Aggrieved by the NCLAT’s decision, the Appellant appealed to the Supreme Court, which recorded that Canara Bank rejected a ₹6 crore One-Time Settlement proposal.
  

Main Issue:

• Whether the NCLT was obligated to admit the application under Section 7 of the Insolvency & Bankruptcy Code, 2016, or could it have refused admission for valid reasons? (Paragraph 5)