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TMI Blog2017 (12) TMI 1544X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of suppression of relevant facts. The Adjudicating Authority, having held that otherwise the application under Section 10 is complete and in absence of any ineligibility of appellant, it was incumbent on the part of the Adjudicating Authority to admit the appeal, having no jurisdiction to notice unrelated facts beyond the requirement under the I & B Code and the Forms prescribed under the Adjudicating Authority Rules. Case is remitted back to the Adjudicating Authority, Mumbai Bench to admit the application under Section 10 after notice to the parties if there is no defect. - Company Appeal (AT) (Insolvency) No. 100 of 2017 - - - Dated:- 13-12-2017 - S.J. Mukhopadhaya, A.I.S. Cheema, and Balvinder Singh, JJ. For Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stay/stall the proceedings vide which the personal properties of the guarantors offered as securities/collateral are not enforced or taken possession of Under the provisions of SARFAESI, guarantees can be invoked, as the liability towards the Financial Creditors would be joint and several. In the resolution process, these personal properties would neither be seized, attached nor repossessed, as the resolution professional would only be concerned about the assets of the Corporate Debtor or any immovable property in its name. The direction for imposing a moratorium would suit the directors and the guarantors perfectly from being dispossessed from their immovable properties. 11. The admission of the Petition would have a serious impact on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt - Corporate Applicant is that initiation of proceedings under the SARFAESI Act cannot be a ground to reject an application under Section 10, if otherwise it is complete in terms of I B Code and Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as the 'Adjudicating Authority Rules') including Form 6 therein. The respondents on appearance have taken the similar plea as noticed by the Adjudicating Authority and recorded as above. 4. Similar question fell for consideration before this Appellate Tribunal in M/s. Unigreen Global Private Limited vs. Punjab National Bank and others - Company Appeal (AT) (Insolvency) 81/2017. In the said case, this Appellate Tribunal by its judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 10 does not empower the Adjudicating Authority to go beyond the records as prescribed under Section 10 and the informations as required to be submitted in Form 6 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority) Rules, 2016 subject to ineligibility prescribed under Section 11. If all informations are provided by an applicant as required under Section 10 and Form 6 and if the Corporate Applicant is otherwise not ineligible under Section 11, the Adjudicating Authority is bound to admit the application and cannot reject the application on any other ground. 23. Any fact unrelated or beyond the requirement under I B Code or Forms prescribed under Adjudicating Authority Rules (Form 6 in the present case) are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e SARFAESI Act, 2002 or suit under Section 19 of the DRT Act, 1993 pending before Debt Recovery Tribunal or appeal pending before Debt Recovery Appellate Tribunal cannot proceed in view of the order of moratorium as may be passed. xxx xxx xxx 28. In a case where a winding up proceedings has already been initiated against a Corporate Debtor by the Hon'ble High Court or Tribunal or liquidation order has been passed in respect of Corporate Debtor, no application under Section 10 can be filed by the Corporate Applicant in view of ineligibility under Section 11(d) of I B Code, as quoted below: 11. Persons not entitled to make application - The following persons shall not be entitled to make an application to initiate corporate in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the application on the ground of suppression of relevant facts. 6. The Adjudicating Authority, having held that otherwise the application under Section 10 is complete and in absence of any ineligibility of appellant, it was incumbent on the part of the Adjudicating Authority to admit the appeal, having no jurisdiction to notice unrelated facts beyond the requirement under the I B Code and the Forms prescribed under the Adjudicating Authority Rules. 7. For the reasons aforesaid and as the case of the appellant is covered by the decision of this Appellate Tribunal in M/s. Unigreen Global Private Limited (Supra), we have no option but to set aside the order dated 22nd June, 2017 passed in CP No. 1103/I BP/2017and the same is accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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