TMI Blog2017 (9) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice under Rule 4(3) and the amount of default shown by the 'Financial Creditor' in its original application under Section 7. On the other hand, the 'Corporate Debtor' has explained that the amount of interest as was calculated upto 31 t March, 2012, if further calculated for the period from 1St April, 2012 to 14th May, 2017, then the total debt comes to ₹ 1,09,32,72,312.86p. The default amount as on 31st March, 2012 remains constant. Thus we find that neither any misleading statement was made by the 'Financial Creditor' nor any misleading statement of default was made. The case of the Respondent-'Financial Creditor', being different from the case of 'ICICI Bank Limited' (the 'Financial Creditor' of M/s. Starlog Enterprises Limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to as 'Financial Creditor') under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I B Code') was admitted, 'Corporate Insolvency Resolution Process' initiated and consequent order of 'Moratorium' has been passed under Section 14 of the I B Code. The Interim Resolution Professional has also been directed to perform all his functions contemplated under Sections 15, 17, 18, 19, 20and 21 of the I B code. 2. Learned counsel for the Appellants has submitted that there is a mismatch between amount of debt shown in the original application and the amount shown in record submitted after rectification of defect. Reliance was placed on decision of this Appellate Tribunal in & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consequences on the welfare of the company. This makes it imperative for the 'adjudicating authority' to adopt a cautious approach in admitting insolvency applications and also ensuring adherence to the principles of natural justice. 3. Learned counsel for the Appellants referring the application submitted that ₹ 82.37 Crores (Rupees Eighty Two Crore Thirty Seven Lakhs only) was the amount of default shown therein, but after rectification of defect, the amount of default has been shown to the extent to ₹ 1,09,32,72,312.86p. (Rupees One Hundred and Nine Crores Thirty Two Lakhs Seventy Two Thousands Three Hundred Twelve and Eighty Six Paise only). It was further contended that the Learned Adjudicating Authority t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-section, a default includes a default in respect of a financial debt owed not only to the applicant financial creditor but to any other financial creditor of the corporate debtor. ( 2) The financial creditor shall make an application under sub-section (1) in such form and manner and accompanied with such fee as may be prescribed. ( 3) The financial creditor shall, along with the application furnish- ( a) record of the default recorded with the information utility or such other record or evidence of default as may be specified; ( b)- the name of the resolution professional proposed to act as an interim resolution professional; and ( c) any other information as may be specified by the Board. ( 4) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or rejection of such application, as the case may be. 6. From sub-section (5) of Section 7, it is. clear that once the Adjudicating Authority is satisfied that a default has occurred and the application under sub-section (2) is complete, and no disciplinary proceeding is pending against the proposed interim resolution professional, it may, by order, admit the application. Only in case(s) where there is no default or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, the Adjudicating Authority may reject such application, but before passing such order of rejection, the Adjudicating Authority is required to give a notice to the applicant to recti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 012 remains constant. Thus we find that neither any misleading statement was made by the 'Financial Creditor' nor any misleading statement of default was made. The case of the Respondent-'Financial Creditor', being different from the case of 'ICICI Bank Limited' (the 'Financial Creditor' of M/s. Starlog Enterprises Limited), the plea taken by the Appellants cannot be accepted. 9. Another ground taken by Learned Counsel for the Appellants is that the person, who filed the application under Section 7 was not authorised by the Board of Directors of the Bank of India ('Financial Creditor'). 10. The Respondent has brought to our notice that the person who has filed the petition under Section 7, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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