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TMI Blog2022 (10) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... tended that no Resolution has been passed as mentioned in the Power of Attorney. The admission of Section 7 Application and rejection of this Appeal may not come in the way of the Appellant and the Bank in considering the One Time Settlement. The route under Section 12A of the IBC is always open in event the Bank- Financial Creditor accept the OTS. Appeal dismissed. - Company Appeal (AT) (Insolvency) No. 1188 of 2022 - - - Dated:- 14-10-2022 - [ Justice Ashok Bhushan ] Chairperson , [ Dr. Alok Srivastava ] Member ( Technical ) And [ Barun Mitra ] Member ( Technical ) For the Appellant : Advocate Gaurav Mitra, Advocate Pranav Khanna For the Respondents : Advocate PBA Srinivasan, Advocate Parth Tandon JUDGMENT Ashok Bhushan, J. 1. This Appeal has been filed by the Suspended Director of the Corporate Debtor challenging the order dated 31.08.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Bench-VI, admitting Section 7 Application filed by the Canara Bank (erstwhile Syndicate Bank). The Financial Creditor filed Application under Section 7 alleging default of Rs. 59,34,96,998.55/- inclusive of interest. The Adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired therein and as specified in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 6. The Application under Section 7 was filed by the Financial Creditor has been brought on record which is in Form-1 as per the aforesaid Rule. In Part - 1 of Form 1 , Column 5 requires particulars of person authorised to submit Application . Column 5 of the Application is as follows:- S. No. Particulars Details 5. Name and address of the person authorized to submit application on its behalf (enclose authorization) Mr. Sachendra Kumar Vimal, Chief Manager, Canara Bank The present application is being submitted by Avdhesh Bairwa, Advocate, who is authorized to file the present application. Address of Canara Bank, SAM Branch At C-34 2nd Floor DDA 7. The copy of the Power of Attorney referred to in Column 5 is attached along with the Application. The submission which has been pressed by the Counsel for the Appellant is that the authorisation of Power of Attorney is not authorisation which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;Financial Creditor'! 'Operational Creditor'! 'Corporate Applicant' in favour of its officer, which can be delegated even by designation. In such case, officer delegated with power can claim to be the 'Authorized Representative' for the purpose of filing any application under section 7 or Section 9 or Section 10 of 'I B Code'. 38. This apart, if an officer, such as senior Manager of a Bank has been authorised to grant loan, for recovery of loan or to initiate a proceeding for 'Corporate Insolvency Resolution Process' against the person who have taken loan, in such case the 'Corporate Debtor' cannot plead that the officer has power to sanction loan, but such officer has no power to recover the loan amount or to initiate 'Corporate Insolvency Resolution Process', in spite of default of debt. 39. If a plea is taken by the authorised officer that he was authorised to sanction loan and had done so, the application under section 7 cannot be rejected on the ground that no separate specific authorization letter has been issued by the 'Financial Creditor' in favour of such officer designate. 40. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial creditor as may be notified by the Central Government are in addition to the main provision in Section 7(1) that Financial Creditor either by himself or jointly may file Section 7 Application. The Notification dated 27.02.2019 does not confine to the cases where the persons authorised under Notification can alone file the Application rather the said Notification is in addition to what was permitted by main Section as enacted by Code, 2016. 13. As noted above, under Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 read with Form-1, any person authorised by Financial Creditor can file the Application. 14. We may also notice the judgment of the Hon ble Supreme Court in Rajendra Narottamdas Sheth Anr. vs. Chandra Prakash Jain and Anr.- (2022) 5 SCC 600 . The Hon ble Supreme Court has examined the question as to whether an Application under Section 7 of the Code through Power of Attorney Holder for initiating CIRP is permissible. An Application under Section 7 was filed where objection was raised by the Corporate Debtor that Application on the basis of Power of Attorney was not maintainable. Submission of the Counsel for the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in favour of its officer, mere use of word Power of Attorney while delegating such power will not take away the authority of such officer and for all purposes it is to be treated as an authorization by the Financial Creditor / 'Operational Creditor' / Corporate Applicant in favour of its officer, which can be delegated even by designation. In such case, officer delegated with power can claim to be the Authorized Representative for the purpose of filing any application under section 7 or Section 9 or Section 10 of I B Code . 14. The NCLAT was of the opinion that general authorisation given to an officer of the financial creditor by means of a power of attorney, would not disentitle such officer to act as the authorised representative of the financial creditor while filing an application under Section 7 of the Code, merely because the authorisation was granted through a power of attorney. Moreover, the NCLAT in Palogix Infrastructure (supra) has held that if the officer was authorised to sanction loans and had done so, the application filed under Section 7 of the Code cannot be rejected on the ground that no separate specific authorisation letter has be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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