TMI Blog2018 (7) TMI 1690X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces were created and amount are payable and receivable. It is also submitted that authorization letter by Financial Creditor was not filed. 4. Section 7 of I B Code reads as follows: 7. Initiation of corporate insolvency resolution process by financial creditor.- ( 1) A financial creditor either by itself or jointly with other financial creditors may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred. Explanation.-For the purposes of this sub-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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice from the Adjudicating Authority. ( 6) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (5). ( 7) The Adjudicating Authority shall communicate- ( a) the order under clause (a) of sub-section (5) to the financial creditor and the corporate debtor; ( b) the order under clause (b) of sub-section (5) to the financial creditor, within seven days of admission or rejection of such application, as the case may be. 5. From the aforesaid provision it is clear that if the application is incomplete in such case, the Adjudicating Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich requires particulars of the applicant in Part I, particulars of the corporate debtor in Part II, particulars of the proposed interim resolution professional in part III, particulars of the financial debt in part IV and documents, records and evidence of default in part V. Under Rule 4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or speed post to the registered office of the corporate debtor. The speed, within which the adjudicating authority is to ascertain the existence of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of the receipt of the applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 9. For the reasons aforesaid, we set aside the order dated 31.01.2018 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad in CP(IB) No. 158/7/NCLT/AHM/2017 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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