2019 (1) TMI 1718

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....ruptcy Code, 2016 (for short, the 'I&B Code') on 12th March, 2018 before the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, Kolkata but without hearing the Adjudicating Authority adjourned the appeal number of times for one or other reason such as filing reply or filing of rejoinder. Till date no final order has been passed though more than 10 months have passed. In view of non-disposal of application under Section 7, the appeal has been preferred by 'Financial Creditor' against the order of adjournment, which has been adjourned for 16th January, 2019. It has come to our notice that the 'corporate debtor' is from the state of 'Odisha' and the matter may be transferred to 'National Company Law Tribunal', Cuttack Benc....

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....ction 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 is owed and an....

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....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 subsection (7), the adjudicating authority shall then communicate the order passed to t....