TaxTMI 
TaxTMI 
2019 (7) TMI 507
X X X X Extracts X X X X
X X X X Extracts X X X X
....any Law Tribunal), Chandigarh Bench, Chandigarh, whereby and whereunder the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short) filed by the 'Punjab National Bank' against the 'Corporate Debtor' has been admitted, order of 'Moratorium' has been passed and 'Interim Resolution Professional' has been appointed. 2. Learned counsel appearing on behalf of the Appellants submits that Form-1 was not complete as appropriate records were not enclosed with the Form-1 (application under Section 7). 3. It is further submitted that the 'Punjab National Bank' had issued a notice dated 16th July, 2016 under Section 13(2) of the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o go back to Section 3(6) which defines "claim" to mean a right to payment even if it is disputed. The Code gets triggered the moment default is of rupees one lakh or more (Section 4). The corporate insolvency resolution process may be triggered by the corporate debtor itself or a financial creditor or operational creditor. A distinction is made by the Code between debts owed to financial creditors and operational creditors. A financial creditor has been defined under Section 5(7) as a person to whom a financial debt is owed and a financial debt is defined in Section 5(8) to mean a debt which is disbursed against consideration for the time value of money. As opposed to this, an operational creditor means a person to whom an operational debt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hin 14 days of the receipt of the application. It is at the stage of Section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that the "debt", which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may 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 o....