https://www.taxtmi.com/caselaws?id=380033 Under Section 7 of the Insolvency and Bankruptcy Code, the adjudicating authority must examine whether a financial debt and default exist, and cannot reject an application merely because part repayment was made or pledged shares were invoked where the default threshold remains satisfied. The record indicated that sale proceeds of the pledged shares had been credited, and the date of sale, not invocation alone, was material under the repayment and pledge terms. A prior rejected application against the principal borrower did not, by itself, warrant rejection of the connected application against the corporate guarantor, though the same debt could not be pursued beyond admission in parallel proceedings. en-us Tue, 23 Apr 2019 00:00:00 +0530 Wed, 14 Aug 2019 14:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=380033 Under Section 7 of the Insolvency and Bankruptcy Code, the adjudicating authority must examine whether a financial debt and default exist, and cannot reject an application merely because part repayment was made or pledged shares were invoked where the default threshold remains satisfied. The record indicated that sale proceeds of the pledged shares had been credited, and the date of sale, not invocation alone, was material under the repayment and pledge terms. A prior rejected application against the principal borrower did not, by itself, warrant rejection of the connected application against the corporate guarantor, though the same debt could not be pursued beyond admission in parallel proceedings. Case-Laws Insolvency and Bankruptcy Tue, 23 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=380033