TaxTMI 
TaxTMI 
2018 (7) TMI 1690
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....e Insolvency Resolution Process against the Respondent - 'Corporate Debtor', which has been rejected by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench by impugned order dated 31st January, 2018 on the ground that the Authorisation by 'M/s R. B. Synthetics' and HUF of Radhakishan Bhagwandas Ruchandani has not been filed. 2. The Adjudicating Authority perused the audited account for the years 2006 to 2011 to find out whether there are some Unsecured Loans from Radhakrishan Bhagwandas Ruchandani or not. The Adjudicating Authority also perused Annexure 'E' to the petition i.e. 'Audited Financial Statement' which shows that the loan amounts and advances received from related parties amounting to Rs. 8,35,944/- as ....
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....her information as may be specified by the Board. (4) The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor under sub-section (3). (5) Where the Adjudicating Authority is satisfied that- (a) a default has occurred and the application under sub-section (2) is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application; or (b) default has not occurred or the application under sub-section (2) is incomplete or any discip....
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.... 'default' is concerned, such question can be looked into only if the Corporate Debtor disputes the 'debt' or takes the plea that there is no default though there is a debt. 7. In "Innoventive Industries Ltd. Vs. ICICI Bank and Ors." - (2018)1 SCC 407, Hon'ble Supreme Court observed and held as follows: "28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor - it need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under sub-section (1) in such form and manner as is prescribed, which takesus to the ....
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....ay give notice to the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be." 8. From the aforesaid provision it is clear that if the application is filed under Section 7, default in respect of a 'financial debt' owed to any of the 'Financial Creditors' of the corporate debtor, it need not be a default of debt owed to the particular Financial Creditor and may be a Co-Financial Creditor under Section 7(2). Application made under Sub-section (1) in the form prescribed required to....