2017 (11) TMI 1621

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ny Ltd. (Financial Creditor) against one 'Tecpro Systems Ltd.' (Corporate Debtor). After notice to the Corporate Debtor, the case was taken up by the Adjudicating Authority, Principal Bench, New Delhi. The appellant, who is not a 'Corporate Debtor', but a third party and claimed to be an 'Operational Creditor', appeared and opposed the application under Section 7 preferred by the 'Edelweiss Assets Reconstruction Company Ltd.' (Financial Creditor) on the ground of pendency of winding up cases. The Adjudicating Authority on hearing the parties and taking into consideration the facts that the record was complete, filed in Form 1 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, Company Appeal (AT) (Insolvency) No.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....corporate applicant in respect of such corporate debtor." 3. From the aforesaid provision, we find that the 'Corporate Debtor' or 'Financial Creditor' is ineligible to make application under Section 7 or 10 where (a) a corporate debtor undergoing a corporate insolvency resolution process; or (b) a corporate debtor having completed corporate insolvency resolution process twelve months preceding the date of making of the application; or (c) a corporate debtor or a financial creditor who has violated any of the terms of resolution plan which was approved twelve months before the date of making of an application under this Chapter; or (d) a corporate debtor in respect of whom a liquidation order has been made. 4. Thus, the 'Financial Cred....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r' to make claim before the Insolvency Resolution Professional/Official Liquidator. 9. Similarly, one may argue that in case where 'winding up' proceeding has been ordered by the Hon'ble High Court and thus stands initiated, where is the question of filing an application under section 7 or 9 or initiation of Corporate Insolvency Resolution Process, which, on failure ultimately culminates into liquidation proceedings (winding up proceedings) ? The argument can be that once second stage i.e. liquidation (winding up) proceedings has already initiated, the question of reverting back to the first stage of 'Corporate Insolvency Resolution Process' or preparation of Resolution plan does not arise. One can appreciate such stand which can be deci....