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TMI Blog2019 (7) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... [ 2017 (9) TMI 58 - SUPREME COURT ] , it is clear that the meaning of debt if read along with Section 3(11) means claim which includes even if it is disputed claim. As per the said decision, if the Adjudicating Authority is satisfied that a default has occurred, the Corporate Debtor is entitled to point out that a default has not occurred in the sense that the debt , which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. Thus, it is clear that even when there is a default then the only plea that can be taken is that the debt is not payable in law or in fact. In the present case, it is not the case of the Appellants that debt is not payable in law or in fact - there is sufficient re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is shown to be payable. It is submitted that this fact has not been disclosed in the petition. 4. Having heard learned counsel for the Appellants, we are not inclined to accept such submissions. It is made clear that the application under Section 7 is not a petition. In fact, no affidavit is required to be made, nor any pleadings is to be made like a litigation. 5. In "Binani Industries Limited Vs. Bank of Baroda & Anr. - Company Appeal (AT) (Insolvency) No. 82 of 2018 etc.", this Appellate Tribunal by its judgment dated 14th November, 2018 held that the 'Corporate Insolvency Resolution Process' is not a money claim nor it is a litigation. 6. In "Innoventive Industries Limited v. ICICI Bank and Another- (2018) 1 SCC 407", the Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r triggering the process, Section 7 becomes relevant. Under the explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor- it need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under sub-section (1) in such form and manner as is prescribed, which takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under Rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed form in 5 parts, which requires particulars of the applicant in Part I, particulars of the corporate debtor in Part II, particulars ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the Hon'ble Supreme Court, it is clear that the meaning of "debt" if read along with Section 3(11) means "claim" which includes even if it is disputed claim. As per the said decision, if the Adjudicating Authority is satisfied that a default has occurred, the 'Corporate Debtor' is entitled to point out that a default has not occurred in the sense that the "debt", which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. Thus, it is clear that even when there is a default then the only plea that can be taken is that the debt is not payable in law or in fact. 8. In the present case, it is not the case of the Appellants that debt is not payable in law or in fact. The record ..... X X X X Extracts X X X X X X X X Extracts X X X X
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