Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 727 - AT - Insolvency and BankruptcyInitiate insolvency resolution process in respect of a ‘default’ under the provisions of the ‘I&B Code’ - Held that:- On bare perusal of the 13th June, 2017 and the 12th February, 2018 Circulars, it is clear that they are not applicable in the present case. The 13th June, 2017 Circular only provides directions for initiating ‘Corporate Insolvency Resolution Process’ under the ‘I&B Code’ for certain ‘identified accounts’. The 12th February, 2018 Circular has come into effect after the filing of the application under Section 7 by the State Bank of India. Therefore, the said Circular is not applicable in the present case. The directions of the Reserve Bank of India also suggest that the Reserve Bank of India never intended to interfere with the statutory remedy of resolution process under the ‘I&B Code’. Those Circulars also cannot override the provisions of the ‘I&B Code’. The right of the Creditors under the ‘I&B Code’ for initiation of ‘Corporate Insolvency Resolution Process’ is a statutory right. The ‘I&B Code’ is a special enactment passed by the legislature and is a complete Code in itself. The Adjudicating Authority needs only to be satisfied of the existence of a debt and default if any. Once the Adjudicating Authority is satisfied, and the application is complete, then the application is required to be admitted. In the present case, as we find that there is no dispute about debt or default and the same has not been denied by the ‘Corporate Debtor’, the present appeal being devoid any merit is dismissed.
|