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 1690 - AT - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - Held that:- If the application is filed under Section 7, default in respect of a ‘financial debt’ owed to any of the ‘Financial Creditors’ of the corporate debtor, it need not be a default of debt owed to the particular Financial Creditor and may be a Co-Financial Creditor under Section 7(2). Application made under Sub-section (1) in the form prescribed required to accompany the documents and records therein. If the authorization letter was not accompanied or other record relating to debt or a default was not enclosed, as pleaded by learned counsel appearing on behalf of Corporate Debtor, which requires to be mentioned in Part-IV and Part-V of Form 1, it was duty on part of the Adjudicating Authority to allow time to the ‘Financial Creditor(s)’ to remove the defects and should not have rejected the application on the ground that the loan amount of certain ‘Financial Creditor’ is not clear from the record. For the reasons aforesaid, we set aside the order passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad and allow Appellant to remove all the defect as pointed out by learned counsel for the Corporate Debtor and enclose the authorization letter by the Financial Creditor(s), providing all the detailed material required under Part-IV and Part-V of Form 1 within three weeks.
|