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TMI Blog2019 (8) TMI 1580X X X X Extracts X X X X X X X X Extracts X X X X ..... admit by initiating CIRP appointing by IRP, and declaring moratorium etc. in respect of the Corporate Debtor. Petition admitted - moratorium declared. - CP (IB) No. 209/BB/2019 - - - Dated:- 30-8-2019 - Rajeswara Rao Vittanala, Member (J) and Dr. Ashok Kumar Mishra, Member (T) For the Appellant : K.C. Sudarshan ORDER Rajeswara Rao Vittanala, Member (J) 1. C.P.(IB) No. 209/BB/2019 is filed by Corporation Bank ( hereinafter referred to as 'Petitioner/Financial Creditor') U/s 7 of the IBC, 2016, R/w Rule 4 of the I B (Application to Adjudicating Authority) Rules, 2016, by inter alia seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Amintha Infrastructure Private Limited, on the ground that it has committed default for total amount of ₹ 7,17,03,414/-(Rupees Seven Crore Seventeen Lakhs Three Thousand Four Hundred and Fourteen Only) as on 01.07.2015 including interest. 2. Brief facts of the case, as mentioned in the Company Petition, are as follows: (1) Corporation Bank ('Petitioner/Financial Creditor') is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed dues, the Bank issued a notice dated 03.11.2016 to the Corporate Debtor under Section 13, R/w Section 13(3) of SARFAESI Act. 2002 (Act No. 2 of 2002) by demanding the Corporate Debtor to pay ₹ 6,80,00,000/-. Therefore, the Financial Creditor has filed an application before the Debts Recover Tribunal dated 24.05.2017 bearing O.A. No. 570/2017 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The Respondent had failed to pay the amount and also did not raise any dispute by way of reply. Therefore the instant Company Petition is filed in accordance with law. 3. Heard Shri K.C. Sudarshan, learned Counsel for the Petitioner. None appears for the Respondent. We have carefully perused the pleadings of the party and the extant provisions of the Code and the law. 4. The learned Counsel for the Petitioner submits that notice as directed by this Tribunal has already been served on the Director of the Corporate Debtor' Company and also on the Company. The learned Counsel for the Petitioner, while pointing out various averments made in the petition and also filed synopsis, as briefly stated supra. He has further submitted that the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiation of Insolvency Resolution process by a financial creditor is provided in Section 7 of the I B Code. As per sub-section (1) of Section 7 of the I B Code, the trigger for filing of an application by a financial creditor before the Adjudicating Authority is when a default in respect of any financial debt has occurred. Sub-section (2) of Section 7 provides that the financial creditor shall make an application in prescribed form and manner and with prescribed documents, including: i. record of the default recorded with the information utility or such other record or evidence of default as may be specified; ii The name of the resolution professional proposed to act as an interim resolution professional; and iii. Any other information as may be specified by the Board. 56. The procedure once an application is filed by the financial creditor with the Adjudicating Authority is specified in sub-section (4) of Section 7 to sub-section (7) of Section 7 of the Code. As subsection (4) of Section 7 of the I B Code: (4) The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), ascertain the existence of a defau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of the receipt of the application. It is at the stage of Section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that 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. The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be. 8. Therefore, we are of the considered opinion that the instant application is filed strictly in accordance with the extant provisions of the Code and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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