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TMI Blog2019 (8) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the DRT for adjudicating of such disputed amount cannot be a ground to reject the application u/s 7 of the I B Code, if the Adjudicating Authority is satisfied that there is a debt and default and the application is complete. On the other hand, in view of Section 14 all such proceedings in respect of any debt will remain stayed and cannot proceed during the period of moratorium. For the reasons aforesaid, we are not inclined to interfere with the impugned order in appeal. - Company Appeal (AT)(Ins) No. 499 of 2019 - - - Dated:- 8-5-2019 - Mr S. J. Mukhopadhaya, Chairperson, Mr A. I. S. Cheema, Member (Judicial) And Mr Kanthi Narahari, Member (Technical) For The Appellant : Mr. Balaji Srinivasan and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter is pending for consideration in the Revision Application, which is pending before the DRT . 4. We have heard the learned counsel appearing on behalf of the Appellant and perused the record. 5. Hon ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank, - (2018) 1 SCC 407] while dealing with the application u/s 7, observed as follows: 27. The scheme of the Code is to ensure that when a default takes place, in the sense that a debt becomes due and is not paid, the insolvency resolution process begins. Default is defined in Section 3(12) in very wide terms as meaning non-payment of a debt once it becomes due and payable, which includes non-payment of even part there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of the proposed interim resolution professional in Part III, particulars of the financial debt in Part IV and documents, records and evidence of default in Part V. Under Rule 4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or speed post to the registered office of the corporate debtor. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipt of the demand notice or copy of the invoice mentioned in sub-section (1), bring to the notice of the operational creditor the existence of a dispute or the record of the pendency of a suit or arbitration proceedings, which is pre-existing-i.e. before such notice or invoice was received by the corporate debtor. The moment there is existence of such a dispute, the operational creditor gets out of the clutches of the Code. 30 . On the other hand, as we have seen, in the case of a corporate debtor who commits a default of a financial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the financial creditor to satisfy itself that a default has occurred. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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