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TMI Blog2020 (12) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... Financial Creditor. These facts clearly establish that the debt is due and payable both in law and in fact. It is now well settled law that in the proceeding under Section 7 of the Insolvency and Bankruptcy Code, 20, Adjudicating Authority has to see only two relevant facts (i) whether debt more than ₹ 1 lakh before 24.03.2020 in case of default prior to that date is due and payable by the Corporate Debtor (ii) whether the Corporate Debtor committed default in paying the debt. In this case, both facts have been established by evidence on record. The Corporate Debtor is required to be admitted in Corporate Insolvency Resolution Process as per Section 7 of the Insolvency and Bankruptcy Code, 2016 - Application admitted - morato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the bank (in SA No.251/2018) holding that date of NPA of the loan account of the Corporate Debtor was not correct date. The bank filed Appeal bearing No.04 of 2019 against the above order. However, DRAT-Mumbai by order dated 25.09.2019 dismissed the appeal. 5. This application is filed by the bank to start Corporate Insolvency Process of the Corporate Debtor on the ground that Corporate Debtor committed default of the financial debt due and payable. 6. Notice of this application was served on the Corporate Debtor. It has appeared through one Mr. Mohit Sharma, authorized representative of the Corporate Debtor. He filed affidavit in reply. 7. We have gone through the affidavit in reply. Corporate Debtor raised only defence which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de. 11. It is also not in dispute that even Hon'ble DRAT approved the above finding of DRT. What we could gather from the perusal of above order is that DRT, DRAT held that date of declaration of loan account of the Corporate Debtor to be NPA is not correct and demand notice under Section 13 of SARFAESI Act, 2002 is not sustainable at law. We are not expressing any other or contrary opinion thereto. We only note that this proceeding is not a proceeding for recovery of the loan amount. This proceeding is for resolution of Insolvency of the Corporate Debtor because the Corporate Debtor committed default in paying the financial debt. 12. Section 7 of the Insolvency and Bankruptcy Code, 2016 makes it clear that the application under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable as the same are clearly distinguishable on facts. It is also been claimed that application was not maintainable as the false information has deliberately been provided by the Financial Creditor as far as date of default is concerned. In view of our decision on the basis of other material on record and considering the fact that such date was mentioned on the basis of earlier actions, we do not find any substance in this contention of the Corporate Debtor also. 14. For all above reasons, we hold that the Corporate Debtor is required to be admitted in Corporate Insolvency Resolution Process as per Section 7 of the Insolvency and Bankruptcy Code, 2016. 15. The name of proposed IRP with requisite consent of such person is on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the SARFAESI Act, 2002 the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor. 5. Further, litigation or any application, if any, is pending before any competent Court of law under the provisions of the SARFAESI Act and RDB Act, prior to pronouncement of this order such proceedings are expected to be dealt with in accordance with law r.w. Section 14 and Section 238 of the Insolvency Bankruptcy Code, 2016. 6. That the supply of essential goods or services to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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