2019 (1) TMI 1566

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....uthority whereby and whereunder the Adjudicating Authority adjourn the matter granting seven days' time to the 'financial creditor' to submit its clarification or removal of the defects as pointed out therein. 2. Mr. Pratik Tripathi, Company Secretary appearing on behalf of the 'corporate debtor' submits that the matter is pending for about one year and the Adjudicating Authority has not passed any order either admitting or rejecting the application filed under Section 7 of the 'I&B Code'. Ms. Radhika Dubey, learned counsel appearing on behalf of the 'financial creditor' submits that the Adjudicating Authority has merely asked for clarification. She has brought to our notice the order dated 3rd October, 2018 passed by this Appellate Trib....

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....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 takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under Rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed form in 5 parts, which requires particulars of the applicant in Part I, particulars of the corporate debtor in Part II, particulars of the proposed interim resolution profess....

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....judicating Authority is not required to decide mis-match of 'debt' occurred in one place or the other place and the mis-match of 'debt' cannot be a ground to reject the claim if the amount is due more than Rupees One Lakh and there is a 'default'. Under Section 7(5), the Adjudicating Authority is to be satisfied that a 'default' has been occurred. If the 'debt' is more than Rupees One lakh, then the Adjudicating Authority is required to admit the application, except where there is defect, which can be removed within seven days from the date of receipt of the notice from the Adjudicating Authority. The 'corporate debtor' may only take plea that the 'default' has not occurred in the sense that 'debt' which has also includes 'disputed claim' i....