2019 (8) TMI 1867

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....cation under Section 7 of Insolvency and Bankruptcy Code, 2016 (In short 'IBC') on 12.02.2019 pursuant to which, on notice, Hind Tradex Ltd ('Corporate Debtor') appeared. However, instead of argument on the question of maintainability for admission of application under Section 7 of IBC, six Directors-Applicants of the 'Financial Creditor' sought impleadment as party Respondent. 2. The Adjudicating Authority (National Company Law Tribunal) Principal Bench, New Delhi, by impugned order dated 29.04.2019 allowed the prayer for intervention by the Directors of the 'Financial Creditor' and to address arguments at the time of admission without impleading them as party. 3. We have heard the learned Counsels for the Appellant/'Financial Credit....

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....t 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 operational debt under Section 5 (21) means a claim in respect of provision of goods or services. 28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the explanation 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 t....

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....e 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 the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be. 29. The scheme of Section 7 stands in contrast with the scheme under Section 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....