2018 (9) TMI 1998

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.... Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the I&B Code) filed by M/s. Tata Capital Financial Services Ltd. against the Corporate Debtor has been admitted, order of moratorium has been passed and Resolution Professional has been appointed. 2. Learned counsel appearing on behalf of the appellant submits that an arbitration proceeding was pending before the Arbitrator between the Corporate Company Appeal (AT) (Insolvency) No. 219 of 2018 Debtor and the Financial Creditor and, therefore, an application under Section 7 of the I&B Code was not maintainable. However, such ground cannot be taken to reject an application under Section 7 of the I&B Code. 3. The difference between Sections 7, 8 and 9 of the I&B Code was e....

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....certain 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 application must be admitted unless it is incomplete, in which case it may give notice to the appli....

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....rate Debtor defaulted to pay the amount has not been disputed. Therefore, the application cannot be rejected. 4. It was next contended that the Financial Creditor has filed an application under Section 433 and 434 of the Companies Act, 1956 for winding up of the Company which stands transferred before the National Company Law Tribunal, Chennai and is pending for consideration. However, as the said petition has not been admitted and the winding up proceeding has not been initiated, the application under Section 7 of the I&B Code cannot be rejected on the ground of filing a winding up case. 5. Learned counsel for the appellant further submitted that the application was barred by limitation but such submission cannot be accepted for fili....