This legal summary concerns the maintainability of a Section 7 ...

Section 7 Application Valid for CIRP Initiation: Financial Debt and Default Proven, Moratorium Enforced.

October 26, 2024

Case Laws IBC Tri

This legal summary concerns the maintainability of a Section 7 application for initiating the Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor. The key points are: The transaction involved receivables discounting on a recourse basis, constituting a financial debt u/s 5(8)(e) of the IBC Act. The Supreme Court's rulings in Innoventive Industries Ltd. vs. ICICI Bank and Mobilox Innovations Pvt. Ltd. vs. Kirusa Software Pvt. Ltd. establish that for a Section 7 application by a Financial Creditor, the existence of a financial debt and default exceeding Rs. 1 crore is sufficient for admission, without considering defenses of set-off or counterclaim. In the present case, the Financial Creditor proved the existence of debt and default exceeding Rs. 1 crore by the Corporate Debtor. Therefore, as per Section 7(5) of the IBC Act, the application was admitted, and the CIRP was initiated against the Corporate Debtor, with a moratorium declared.

View Source

← Previous Next →

This legal summary concerns the maintainability of a Section 7 ...

Section 7 Application Valid for CIRP Initiation: Financial Debt and Default Proven, Moratorium Enforced.

October 26, 2024

Case Laws IBC Tri

You may also like:

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...

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...

The National Company Law Appellate Tribunal (NCLAT) dismissed the appeal, upholding the order admitting the Section 7 application filed by ICICI Bank against the...

Initiation of CIRP - Financial debt or not - application dismissed by the NCLT - The definition of debt and default which is the only thing required for the purpose of...

Refusal to stay the proceedings initiated by the Respondent, Axis Bank Limited against the Appellant - The title “Insolvency and Bankruptcy Code” makes it amply clear...

Maintainability of section 7 application - Initiation of CIRP - existence of debt and default - date of default - On 14.02.2020 the account was declared NPA - The...

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...

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...

Initiation of CIRP - Since Adjudicating Authority has not relied upon the “confirmation and undertaking” and has come to a conclusion that there is a debt and default...

Corporate debtor filed a reply to the financial creditor's Section 7 application in December 2023, but moved an application u/s 8 for reference to arbitration only on...

Admission of Section 7 Application - CIRP - The case involved an appeal by a suspended director of a corporate debtor against the admission of a Section 7 application by...

Admission of section 7 application - financial debt owed by the Corporate Debtor or not - Home Buyers - The application was filed by respondents, who were allottees in a...

CIRP - Admission of Section 7 application - The NCLAT addressed the validity and impact of the ex parte arbitral award. It concluded that, irrespective of the award's...

Initiation of CIRP u/s 7 - classification of Commission on sales - Financial Debt or not - threshold limit - The Adjudicating Authority analyzed the definition of...

Financial debt established through ledger entries and corporate debtor's admission. Section 7 application not time-barred due to corporate debtor's promise to repay u/s...

Quick Updates: