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2022 (3) TMI 415 - AT - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - rejection of plaint/ suit filed by the Appellant on the ground that suit is barred by Section 34 of the SARFAESI Act - HELD THAT:- The Hon’ble Supreme Court dismissed the Appeal filed by the Appellant, however, the Hon’ble Supreme Court observed that it shall be open for the Appellant to initiate appropriate proceedings before the DRT under Section 17 - It was on the prayer of the Appellant that liberty was granted by the Hon’ble Supreme Court to file an Application under Section 17 of the SARFAESI Act before the DRT. The Hon’ble Supreme Court has also noticed that in fact proceedings before DRT were initiated by the Appellant under Section 17, which fact has been noticed. Before the Hon’ble Supreme Court, there was no issue regarding Application filed under Section 7 of the Code by the Respondent against the Appellant, which was pending at the time when Hon’ble Supreme Court decided the Appeal. No observation has been made by the Hon’ble Supreme Court with regard to Section 7 Application of the Code, nor it can be held that judgment of Hon’ble Supreme Court even impliedly interdicts the Application under Section 7 filed by the Respondent against the Appellant. The Appellant has made a prayer for staying the proceedings under Section 7 of the Code or keeping in abeyance the hearing of Section 7 Application until the final disposal of the Application filed by it before the DRT Chennai - Adjudicating Authority did not commit any error in rejecting the application - appeal dismissed.
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