2019 (10) TMI 332

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....thority (National Company Law Tribunal), Special Bench New Delhi. 2. By the impugned order, the Adjudicating Authority admitted the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for short the 'I&B Code') preferred by M/s Pashupati Jewellers ('Financial Creditor'). Learned Counsel appearing on behalf of the Appellant submits that loan amount Rs. 2,60,00,000/- was taken by one Mr. Bal Karan Singh Bhullar from Sumedha Kanodia and an agreement was executed on 7th April, 2017. The said agreement was executed in violation of Section 185 of the Companies Act, 2013. The 'Corporate Guarantee and Undertaking' Agreement dated 7th April, 2017 as purported, has been given by Marigold Overseas Limited ('Corporate Debtor'). Th....

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....e and Undertaking' Agreement to Registrar of Companies and suppressed the fact, the Appellant or the subsequent Director, cannot take a plea that the 'Corporate Guarantee and Undertaking' Agreement was obtained by fraud on 7th April, 2017 and is not reflected in the records of the Registrar of Companies. 6. In "Innoventive Industries Ltd. Vs. ICICI Bank and Anr. - (2018) 1 SCC 407", the Hon'ble Supreme Court observed: - "27. The scheme of the Code is to ensure that when a default takes place, in the sense that a debt becomes due and is not paid, the insolvency resolution process begins. Default is defined in Section 3(12) in very wide terms as meaning non-payment of a debt once it becomes due and payable, which includes non-payment of ....

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....rescribed, 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 professional in Part III, particulars of the financial debt in Part IV and documents, records and evidence of default in Part V. Under Rule 4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or speed post to the registered office of the corporate debtor. T....