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TMI Blog2017 (9) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... d 3rd July, 2017 passed by the Learned Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi (hereinafter referred to as 'Adjudicating Authority'), whereby and whereunder the application preferred by Respondent-Bank of India (hereinafter referred to as 'Financial Creditor') under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code') was admitted, 'Corporate Insolvency Resolution Process' initiated and consequent order of 'Moratorium' has been passed under Section 14 of the I&B Code. The Interim Resolution Professional has also been directed to perform all his functions contemplated under Sections 15, 17, 18, 19, 20and 21 of the I&B c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim submitted is correct amount. The I&B Code does not provide for any such mechanism where post-admission, the applicant financial creditor can modify their claim amount. 22. In some of the cases, an insolvency resolution process can and may have adverse consequences on the welfare of the company. This makes it imperative for the 'adjudicating authority' to adopt a cautious approach in admitting insolvency applications and also ensuring adherence to the principles of natural justice." 3. Learned counsel for the Appellants referring the application submitted that Rs. 82.37 Crores (Rupees Eighty Two Crore Thirty Seven Lakhs only) was the amount of default shown therein, but after rectification of defect, the amount of default ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al creditors may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred. Explanation. -For the purposes of this sub-section, a default includes a default in respect of a financial debt owed not only to the applicant financial creditor but to any other financial creditor of the corporate debtor. (2) The financial creditor shall make an application under sub-section (1) in such form and manner and accompanied with such fee as may be prescribed. (3) The financial creditor shall, along with the application furnish- (a) record of the default recorded with the information utility or such other record or evidence of default as m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial creditor and the corporate debtor; (b) the order under. clause (b) of sub-section (5) to the financial creditor, within seven days of admission or rejection of such application, as the case may be." 6. From sub-section (5) of Section 7, it is. clear that once the Adjudicating Authority is satisfied that a default has occurred and the application under sub-section (2) is complete, and no disciplinary proceeding is pending against the proposed interim resolution professional, it may, by order, admit the application. Only in case(s) where there is no default or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, the Adjudicating Authority may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from 1St April, 2012 to 14th May, 2017, then the total debt comes to Rs. 1,09,32,72,312.86p. The default amount as on 31st March, 2012 remains constant. Thus we find that neither any misleading statement was made by the 'Financial Creditor' nor any misleading statement of default was made. The case of the Respondent-'Financial Creditor', being different from the case of 'ICICI Bank Limited' (the 'Financial Creditor' of M/s. Starlog Enterprises Limited), the plea taken by the Appellants cannot be accepted. 9. Another ground taken by Learned Counsel for the Appellants is that the person, who filed the application under Section 7 was not authorised by the Board of Directors of the Bank of India ('Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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