2022 (9) TMI 1474

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....shwanathan, Sr. Adv., Mr. Sanjay Kapur, AOR, Ms. Megha Karnwal, Adv., Mr. Arjun Bhatia, Adv., Mr. Rahul Sangwan, Adv., Ms. Akhila Nambiar, Adv., Ms. Akshata Joshi, Adv., Ms. Shubhra Kapur, Adv., Mr. Tushar Mehta, SG, Mr. Sanjay Kapur, AOR, Ms. Megha Karnwal, Adv., Mr. Arjun Bhatia, Adv., Ms. Akshata Joshi, Adv., Ms. Madhavi Divan, ASG, Mr. Vikas Mehta, Adv., Ms. Apoorv Khator, Adv., Mr. Jaideep gu....

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.... 7, use the expression "it may, by order" while referring to the power of the adjudicating authority. In clause (a) of subsection (5), the adjudicating authority may, by order, admit the application or in clause (b) it may, by order, reject such an application. Thus, two courses of action are available to the adjudicating authority in a petition under Section 7. The adjudicating authority must eit....

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.... the terms of its jurisdiction under Section 7(5) IBC. The adjudicating authority is empowered only to verify whether a default has occurred or if a default has not occurred. Based upon its decision, the adjudicating authority must then either admit or reject an application, respectively. These are the only two courses of action which are open to the adjudicating authority in accordance with Secti....

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....t either admit the application under clause (a) sub-section (5) or it must reject the application under clause (b) of sub-section (5). The statute does not provide for the adjudicating authority to undertake any other action, but for the two choices available. The question of whether Section 7 sub-section (5) was mandatory or discretionary was not in issue in any of the judgments cited on behalf ....