2023 (1) TMI 1388 - AT - Insolvency and Bankruptcy

Dismissal of Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 - application barred by Section 10-A of IBC - HELD THAT - There being clear categorical statement in Part-IV that date of default is 15.12.2020 which is a period during which Section 10-A had operation thus no error has been committed by the Adjudicating Authority rejecting Application filed under Section 10-A. However, ends of justice will be served in giving liberty to the Appellant to file fresh Application in accordance with law. Appeal dismissed.

Summary

Issues: Appeal against dismissal of Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 as barred by Section 10-A.

Analysis:
The Appellate Tribunal heard the appeal against the Order dated 22nd November, 2022, where the Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was dismissed by the Adjudicating Authority as barred by Section 10-A of the Code. The Appellant argued that despite mentioning the default date as 15.12.2020 in Part-IV, the Statement of Account provided details, indicating the Application was not barred. The Tribunal noted the categorical statement in Part-IV specifying the default date as 15.12.2020, a period when Section 10-A was in operation. Consequently, the Tribunal found no error in the Adjudicating Authority's decision to reject the Application under Section 10-A. However, in the interest of justice, the Tribunal granted the Appellant the liberty to file a fresh Application in compliance with the law, without expressing any opinion on the merits of the Application. The Tribunal emphasized that the Adjudicating Authority should consider any such future application and make a decision in accordance with the law. Ultimately, the Appeal was dismissed with the aforementioned liberty granted to the Appellant.