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2019 (8) TMI 1867 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHICIRP - Six Directors-Applicants of the Financial Creditor sought impleadment as party Respondent - how the Application under Section 7 of IBC is to be dealt with? HELD THAT:- How the Adjudicating Authority should consider the matter at the stage of admission fell for consideration of Hon’ble Supreme Court in M/S. INNOVENTIVE INDUSTRIES LTD. VERSUS ICICI BANK & ANR. [2017 (9) TMI 58 - SUPREME COURT], when the Hon’ble Supreme Court observed that It is of no matter that the debt is disputed so long as the debt is “due” i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date. It is only when this is proved to the satisfaction of the adjudicating authority that the adjudicating authority may reject an application and not otherwise. From the plain reading of Section 7 of IBC it is clear that the Adjudicating Authority, on being satisfied and if the application is complete, after notice and hearing the Corporate Debtor, may either admit the application or reject it. The Hon’ble Supreme Court also noticed the aforesaid mandate of law. In that view of the matter, there is no requirement for intervention of any Directors or shareholders of the Financial Creditor or any other party before admission of Application under Section 7 of IBC. If the application is admitted, it would be open to any aggrieved party to move before this Appellate Tribunal. The impugned order dated 29.04.2019 is set aside - the Financial Creditor & Corporate Debtor are directed to appear before the Adjudicating Authority and the Adjudicating Authority on hearing the parties will pass appropriate order on merit of the case on the next date or within a reasonable time - appeal allowed.
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