🔍 What Happened

The National Company Law Tribunal (Guwahati Bench) ruled that non-compliance with RBI restructuring norms does not automatically invalidate insolvency proceedings under the IBC.

🧾 Summary

The NCLT clarified that while RBI guidelines for MSME restructuring are important, they do not override the Insolvency and Bankruptcy Code (IBC). If a financial default is established and legal conditions are met, insolvency proceedings can continue even if certain RBI procedures were not followed.

This ruling brings relief to financial creditors while also offering clarity to MSMEs navigating financial stress. It ensures that technical lapses do not block lawful remedies under IBC.

🟢 Public Takeaway

For MSMEs and lenders, IBC remains a strong legal option, even if some RBI norms were missed.