2020 (1) TMI 1380 - NATIONAL COMPANY LAW TRIBUNAL — NEW DELHI BENCH—COURT-VI - Insolvency & Bankruptcy

Head Note / Extract:
Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditor or not - existence of debt and dispute or not - HELD THAT:- It is patent that all requirements of section 7 of the Code for initiation of corporate insolvency resolution process by a financial creditor stand fulfilled. In that regard, the application is complete as per the requirements of section 7(2) of the Code and other conditions prescribed by rule 4(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. There is overwhelming evidence to prove default and name of the resolution professional has also been clearly specified. The form and manner of the application has to be the one as prescribed. It is evident from the record that the application has been filed on the proforma prescribed under rule 4(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 read with section 7 of the Code. We are satisfied that a default amounting to lakhs of rupees has occurred within the meaning of section 4 of the Code and the application under sub-section (2) of section 7 is complete ; and no disciplinary proceedings are pending against the proposed interim resolution professional. Thus, the application warrant admission as it is complete in all respects. Petition admitted - moratorium declared.