TaxTMI 
TaxTMI 
2019 (8) TMI 69
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....s condoned. I. A. No. 1837 of 2019 stands disposed of. 2. This appeal has been preferred by Director of 'M/s Rathi TMT Saria Pvt. Ltd.' (Corporate Debtor), against order dated 16th April, 2019 passed by the Adjudicating Authority (National Company Law Tribunal) Principal Bench, New Delhi initiating Corporate Insolvency Resolution Process against the Corporate Debtor pursuant to application under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by the Respondent - Indian Overseas Bank. 3. Learned counsel appearing on behalf of the Appellant submits that there is dispute about the debt amount. This apart the Adjudicating Authority failed to consider that by Sanction letter dated 3rd May, 2016, which was not filed by the Bank, t....
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....yable, which includes non-payment of even part thereof or an instalment amount. For the meaning of "debt", we have to go to Section 3(11), which in turn tells us that a debt means a liability of obligation in respect of a "claim" and for the meaning of "claim", we have to 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 Sectio....
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....red office of the corporate debtor. The speed, within which the adjudicating authority is to ascertain the existence of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 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 ap....