TaxTMI 
TaxTMI 
2023 (8) TMI 1378
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.... passed by Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) by which order Adjudicating Authority has rejected Section 7 application filed by the Appellant. The Appellant claiming to be the Financial Creditor of the Corporate Debtor has filed the application under Section 7 claiming debt and default of Rs.1,00,59,922/-. The said amount claimed by the appellant included principle of Rs. 65 lakhs as well as interest of Rs.35,59,922/- as on 25.05.2022. 2. Notice were issued by the Adjudicating Authority to which a reply was filed by the Corporate Debtor opposing the Section 7 application, Adjudicating Authority by the impugned order rejected the application. Only reason given by the Adjudicating Authority in paragraph 2 of....
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....ored. It is submitted that date of default is 01.02.2020 as mentioned in the Part-IV. 5. Counsel for the respondent refuting the submission of the counsel for the appellant contends that according to own showing of the appellant the interest has been calculated from 13.12.2019 to 23.05.2022 which also includes the interest from 14.04.2020 to 14.03.2021. It is submitted that the said period was covered by Section 10A period, hence, the interest during the aforesaid period could not have been added in Section 7 application and said interest amount if deleted from the total amount the threshold is not fulfilled. It is submitted that although adjudicating Authority has not given the detailed reason but this is the main reason for rejecting the....
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....ragraph 8 of the Judgment which is as follows: "8. In Ramesh Kymal's Case, the Appellant had filed an Application under Section 9 on 11th May, 2020 on the ground of default. The ordinance No. 09/2020 was promulgated by the President of India on 05th June, 2020 by which Section 10A was inserted into the I&B Code, 2016. An Application was filed by the Corporate Debtor for dismissal of Section 9 Application, the Section 9 Application was dismissed on the ground of Section 10A. Challenging the order of the Adjudicating Authority as well as Appellate Tribunal, Appeal was filed in the Supreme Court. Argument which was advanced before the Hon'ble Supreme Court was that Section 10A having been inserted in the statute book with effect from....
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....rued during the Section 10A period whether the said interest amount is to be deducted while computing the threshold. Present is not a case where bar of Section 10A has been pressed rather present is the case where submission is that the interest amount which is occurring during the Section 10 A period should be excluded from computation of threshold. 10. The Section 10 A provides that no application/proceedings under Section 7,9 & 10 is to be initiated for a default which is committed during Section 10A period. What is bar is initiation of proceedings when Corporate Debtor commits default in Section 10 A period. If the default is committed prior to Section 10A period and continues in the Section 10 A period the initiation of proceeding is ....
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.... be claimed by the application only when there is clear default during the prohibited period. The said benefit cannot be claimed by the Appellant by ignoring the admission of default which was prior to 25.03.2020. There being clear admission in the present case, in letter dated September 9, 2021 where the Corporate Debtor itself has admitted that he has failed to pay interest for the quarters ending September 2019 and December 2019 thus acknowledging that it has defaulted in servicing its obligations under the DSA. 8. We, thus, are of the view that the Adjudicating Authority has after considering all relevant facts and after finding debt and default has admitted the application. The fact that before this Tribunal, the Appellant has taken ....