2024 (8) TMI 405

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.... Mr. Sumesh Dhawan , Vatsala Kak , Raghav Dembla , Adv For the Respondent : Mr. Ankur Mahindra , Adv For the Appellants : Mr. Dhruv Gupta , Adv For the Respondent : Mr. Sumesh Dhawan , Vatsala Kak , Raghav Dembla , Adv. for R2 to 7 Mr. Ankur Mahindra , Adv ORDER Per : Justice Rakesh Kumar Jain ( Oral ) Comp. App. ( AT ) ( Ins ) No. 1406 of 2023 This appeal is directed against the order dated 29.08.2023 by which an application filed under Section 7 of the Code by the Appellant for the resolution of its amount of Rs. 2,31,00,000/- has been dismissed without the arguments having been addressed on the aforesaid application. 2. Mr. Ankur Mahindra, Counsel appearing on behalf of the Respondent has not denied this fact. ....

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....d a patent error in dismissing the application only on the ground that it has been filed before the admission of application under Section 7 which is contrary to the law laid down by the Hon'ble Supreme Court and this Court in various judgments. 3. In this regard, he has relied upon a decision of the Hon'ble Supreme Court rendered in the case of Beacon Trusteeship Limited Vs. Earthcon Infracon Pvt. Ltd. & Anr., 2020 SCC OnLine SC 1233 and referred to Paras 7 and 8 which read as under:- "7. Considering the provision of Section 65 of the IBC, it is necessary for the Adjudicating Authority in case such an allegation is raised to go into the same. In case, such an objection is raised or application is filed before the Adjudicating A....

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....ection 65 of the Code would be maintainable only once the application under Section 7, 9 or 10 is admitted and the CIRP is initiated. However, in our considered opinion the view taken by the Learned Tribunal is totally erroneous as it has not looked into the basic provisions much less the definitions provided under Section 5(11) and 5(12) of the Code and has been unnecessarily influenced with the word "initiates" used under Section 65 to observe that it would mean that when the CIRP is initiated i.e. after the admission. " 14. In this respect, regard may be had to the decision of the Hon'ble Supreme Court in the case of Ramesh Kymal (Supra) in which the Hon'ble Supreme Court has held that the date of initiation of CIRP is the date ....

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....porate Debtor from being dragged into CIRP with malafide. Section 65 provides that if any person initiates the Insolvency Resolution Process or liquidation proceedings fraudulently or with malicious intend for any purpose other than for resolution of Insolvency or Liquidation, the Adjudicating Authority may impose upon such person a penalty. Section 65 provides that where any person furnishes any information under Section 7, which is false in material particulars, knowing it to be false or omits any material facts, knowing it to be material such person shall be punished with fine." 6. Counsel for the Respondent (FC) has though reiterated the stand taken by it before the Tribunal. 7. We have heard Counsel for the parties and perused th....