Initiation of CIRP - The burden of prima facie proving ...

Financial Creditor Must Prove Default and Timeliness for Section 7 Application; Limitation Period Extended u/s 18.

October 4, 2021

Case Laws Insolvency and Bankruptcy SC

Initiation of CIRP - The burden of prima facie proving occurrence of the default and that the application filed under Section 7 of the Code is within the period of limitation, is entirely on the financial creditor. While the decision to admit an application under Section 7 is typically made on the basis of material furnished by the financial creditor, the Adjudicating Authority is not barred from examining the material that is placed on record by the corporate debtor to determine that such application is not beyond the period of limitation. Undoubtedly, there is sufficient material in the present case to justify enlargement of the extension period in accordance with Section 18 of the Limitation Act and such material has also been considered by the Adjudicating Authority before admitting the application under Section 7 of the Code. - SC

View Source

← Previous Next →

Initiation of CIRP - The burden of prima facie proving ...

Financial Creditor Must Prove Default and Timeliness for Section 7 Application; Limitation Period Extended u/s 18.

October 4, 2021

Case Laws Insolvency and Bankruptcy SC

You may also like:

The NCLAT upheld the admission of the Section 7 application filed by the Financial Creditor (Respondent No.1) for initiating CIRP against the Corporate Debtor. It held...

Admissibility of application filed under CIRP during pendency of the proceeding of SARFAESI Act, 2002 - extension of period of limitation as per section 18 of Limitation...

Admission of section 7 application - financial debt or not - The Tribunal affirmed that the disbursal of ₹5 crores to the corporate debtor by the financial...

Determining the maintainability of a Section 7 application under the Insolvency and Bankruptcy Code (IBC) based on the date of default and the applicability of...

Admission of Section 95 application filed by the Financial Creditor - Personal Guarantor of the Corporate Debtor - date of default - Assignment of debt - unstamped...

The Appellant challenged the admission of the Section 7 application filed by the Financial Creditor, contending no debt was due as the application was premature. The...

Admission of section 7 application - initiation of CIRP against the Corporate Debtor - existence of debt and default or not - When the Financial Creditor had repeatedly...

Maintainability of application - initiation of CIRP - Period of limitation - the legislative policy now is to move away from the concept of “inability to pay debts” to...

Initiation of CIRP - It is also an admitted fact that there are no documents/records to prove that the Appellant is a Financial Creditor. The Appellant stated that the...

The appeal challenged the admittance of a Section 95 application filed by the Financial Creditor, contending it was time-barred. The key issue was whether a letter dated...

This legal summary concerns the maintainability of a Section 7 application for initiating the Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor....

The Appellate Tribunal held that the Financial Creditor is permitted to amend the date of default pleaded in the rejoinder affidavit, as the date of default is relevant...

Initiation of CIRP - NCLT rejected the application - Financial Creditors - non-disbursement of part of financial assistance sanctioned by the Financial Creditors -...

Disqualification of a director of the financial creditor to sign the Section 7 application was challenged. The application u/s 7, signed by the director of the financial...

Initiation of CIRP - Application barred by time limitation or not - The acknowledgement made by the Principal Borrower within three years’ period from the date of...

Quick Updates: