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2020 (10) TMI 586 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- Rule 7 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, empowers this Adjudicating Authority to look into the documents which are being filed by the Corporate Applicant and to ascertain whether the said documents are in order. It must be noted here that this Adjudicating Authority is not a mere stamping authority and is required to apply its mind in relation to the veracity of the documents filed correlating with Annexures required to be enclosed under the prescribed form, namely Form 6 under the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016. It is evident from the record or proceedings that the matters were initially reserved for orders on 08.11.2019 and thereafter, it was posted for clarifications on 18.11.2019 and an opportunity to rectify the defects in the Application as per proviso the sub - section (4) of Section 10 of IBC, 2016. In spite of the same the discrepancies in the documents in relation to the Audited Balance Sheet as on 31.03.2018 & 31.03.2019 and for the period ending 15.09.2019 still persists and as such the present Application filed by the Corporate Applicant is being surrounded with doubts. Hon'ble Supreme Court in a catena of decisions has held that the purpose and object of the I&B Code, 2016 is only for Resolution and not otherwise. However, a perusal of the present Application would go on to show that it has been filed by the Applicant with an ulterior motive to usurp the provisions of Section 10 of the I&B Code, 2016 for the purpose of protection of the asset which has been given for the benefit of a group company, in order to secure the loan availed from the Financial Creditor. The reason stated by the Corporate Applicant for filing its Application under Section 10 of the I&B Code/2016, is viewed by this Authority as a process of subverting the primary object of the I&B Code, 2016. This Authority does not deem fit and appropriate for considering this Application under Section 10 of I&B Code, 2016 - Application dismissed.
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