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TMI Blog2019 (8) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 13(4) of the SARFAESI Act, 2002 on 27th July, 2017. The Appellant has not disputed that the Corporate Debtor defaulted in paying the debt (loan amount). The only ground is taken is about the dispute relating to quantum of payment - even if the loan amount is disputed as we find that the amount is more than Rupees One Lakh (in present case more than ₹ 75 Crore), we hold that the application under Section 7 was rightly admitted by the Adjudicating Authority. Appeal dismissed. - Company Appeal (AT) (Insolvency) No. 609 of 2019 - - - Dated:- 31-5-2019 - Mr S. J. Mukhopadhaya, Chairperson, Mr A. I. S. Cheema, Member (Judicial) And Kanthi Narahari, Member (Technical) For The Appellants : Mr. M. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as per the Financial Creditor the account of the Corporate Debtor was declared as Non-Performing Asset (NPA) with effect from 1st December, 2015. The Corporate Debtor having defaulted, the Financial Creditor issued notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) on 24th April, 2017. Inspite of that payment having not made, action was taken under Section 13(4) of the SARFAESI Act, 2002 on 27th July, 2017. 6. The Appellant has not disputed that the Corporate Debtor defaulted in paying the debt (loan amount). The only ground is taken is about the dispute relating to quantum of payment. In the case of Innoventive Industries Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 5(21) means a claim in respect of provision of goods or services. 28. When it comes to a financial creditor 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 det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be. 7. In view of the aforesaid decision even if the loan amount is disputed as we find that the amount is more than Rupees One Lakh (in present case more than ₹ 75 Crore), we hold that the application under Section 7 was rightly admitted by the Adjudicating Authority. 8. The other ground taken by the Appellant that the application was not filed by the authorized person cannot be entertained the application having been filed by one of the officers of the Bank. 9. In absence of any merit, the appeal is dismissed. No costs. - - TaxTMI - TMITax - Insolvency & Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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