2018 (6) TMI 1697

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....he Corporate Debtor (M/s Neptune Ventures and Developers Private Limited) against order dated 24th May, 2018 passed by Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai in CP No.1640/IBC/NCLT/MB/MAH/2017, whereby and whereunder the application preferred by the 1st Respondent - 'Mr. Viral Rajarashi Mehta' (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code'), has been admitted and order of moratorium has been passed and pursuant to this the Interim Resolution Professional (Respondent No.2) has been appointed. 2. Learned senior counsel appearing on behalf of the Appellant submitted that though there was existence of dispute inspi....

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....lanation 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 professional in part III, part....

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....ion 8 where an operational creditor is, on the occurrence of a default, to first deliver a demand notice of the unpaid debt to the operational debtor in the manner provided in Section 8(1) of the Code. Under Section 8(2), the corporate debtor can, within a period of 10 days of receipt of the demand notice or copy of the invoice mentioned in sub-section (1), bring to the notice of the operational creditor the existence of a dispute or the record of the pendency of a suit or arbitration proceedings, which is pre-existing - i.e. before such notice or invoice was received by the corporate debtor. The moment there is existence of such a dispute, the operational creditor gets out of the clutches of the Code." 6. From the decision of Hon'bl....

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....bai Bench, in CP No.1640/IBC/NCLT/ MB/MAH/2017 and pass following directions:- 9. In effect, order(s) passed by Adjudicating Authority appointing 'Interim Resolution Professional', declaring moratorium, freezing of account and all other order (s) passed by Adjudicating Authority pursuant to impugned order and action, if any, taken by the 'Interim Resolution Professional', including the advertisement, if any, published in the newspaper calling for applications and all such orders and actions are declared illegal and are set aside. The application preferred by 1st Respondent under Section 9 is dismissed. Learned Adjudicating Authority will close the proceeding. The 'Corporate Debtor' is released from all the rigour ....