Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 71 - AT - Insolvency and BankruptcyCorporate insolvency process - debt and default - Held that:- It is not the case of the ‘Financial Creditor’ (State Bank of India) that a winding up proceeding under the Companies Act or liquidation proceeding under the ‘I&B Code’ has been initiated against the ‘Corporate Debtor’. Therefore, the ‘Corporate Applicant’ is eligible to file application under Section 10 of the ‘I&B Code’, if there is a debt and default. We find that the Adjudicating Authority has noticed the extraneous factors unrelated to the Resolution Process not required to be disclosed in terms of Section 10 or Form 6, we hold that the Adjudicating Authority erred in rejecting the application on the ground of suppression of facts. There is nothing on record to suggest that the ‘Corporate Applicant’ has suppressed any fact or has not come with the clean hands. The Adjudicating Authority has also not held that the application has been filed by the Corporate Applicant “fraudulently” or “with malicious intent” for any purpose other than for the resolution process or liquidation or that the voluntary liquidation proceedings have been initiated with the intent to defraud any person. In the absence of any such grounds recorded by the Adjudicating Authority, the impugned order cannot be upheld. The case is remitted back to the Adjudicating Authority for admission of the application under Section 10, if the application is otherwise complete. In case it is incomplete, the Adjudicating Authority will grant time to the appellant to remove the defects.
|