TaxTMI 
TaxTMI 
2026 (3) TMI 1154
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.... Code, 2016. The said provisions Section 10 of the I & B Code, 2016, is extracted hereunder: - "10. Initiation of corporate insolvency resolution process by corporate applicant.-(1) Where a corporate debtor has committed a default, a corporate applicant thereof may file an application for initiating corporate insolvency resolution process with the Adjudicating Authority. (2) The application under sub-section (1) shall be filed in such form, containing such particulars and in such manner and accompanied with such fee as may be prescribed. [(3) The corporate applicant shall, along with the application, furnish- (a) the information relating to its books of account and such other documents for such period as ....
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.... Anantha City Digital Communications Private Limited. The said application has been rejected by the Ld. Tribunal observing thereof that, since the Independent Auditor, in his report dated 27.08.2025 has observed, that, they are unable to furnish any report, whether to the balance sheet, profit and loss statement and cash flow statement contained in the audited financial statements for the year ended 31.03.2025, are not in agreement with the books of account, the financial statements that it does not reflect the true position of the assets and the liabilities of the corporate debtor and hence cannot be relied upon and cannot be considered and be taken as to be the foundation for the propose of admission of the corporate applicant into CIRP u....
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....les, and that the auditor note was required to be addressed by the Interim Resolution Professional (IRP) during CIRP and not by NCLT at the admission stage. He has argued that Ld. NCLT's order overlooks the established legal position as affirmed by Hon'ble Apex Court in the case of Innoventive Industries Limited v. ICICI Bank Limited (2018) 1 SCC 407, which has consistently held that, the Adjudicating Authority ought to have limited itself to ascertain the existence of a default and the completeness of the application which dedicating authority failed to observe in the instant case and therefore, the impugned order may be set aside. 4. There cannot be any doubt, in view of the finding recorded in the impugned order, that the Ld. Tribunal....
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....d under Section 10(3) requiring a mandate for furnishing the applications along with the information as contemplated therein, the use of word "Shall" as to be construed herein as to be made for the reason being that there could be no maximum level of satisfaction of supplying the documents to sustain the application under Section 10. Its consideration will be always dependent upon the wisdom of the Ld. Tribunal when it considers the application for its admission under Section 10 (4) on its merits. Once again we will have to reiterate a well-established principle that a procedural law is only required to satisfy the sustainability of the proceedings and presence of slackness or incompleteness of a documents to be supplied to sustain an appli....