TMI Blog2018 (10) TMI 913X X X X Extracts X X X X X X X X Extracts X X X X ..... olution. An exception had been carved out while enacting the Code that the ‘financial service providers’ have been kept outside the purview of the Code. Being a consolidating legislation only those acts are permitted which are mentioned in the Code and it cannot be made applicable to ‘financial service providers’ including ‘non-banking financial institutions’ and MFI’s banks, which have been kept outside the purview of the Code. The Adjudicating Authority has failed to notice the aforesaid provisions and passed the impugned order dated 8th January, 2018 initiating ‘insolvency corporate resolution process’ against ‘M/s. Mayfair Capital Pvt. Ltd.’, a ‘financial service provider’ (non-banking financial company). As the appellant was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred by the 1st Respondent (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the I B Code ) has been admitted. 2. One of the ground taken by the appellant is that the original order was passed by the Adjudicating Authority without issuing notice to the Corporate Debtor . 3. According to the learned counsel for the appellant M/s. Mayfair Capital Pvt. Ltd. is a financial service provider as defined in Section 3(17) of the I B Code. It was granted certificate of registration on 16th March, 2012 under Section 45-IA of the Reserve Bank of India Act, 1934 to M/s. Mayfair Capital Pvt. Ltd. . Being a Financial Sector Regulator as defined in Section 3(18) of the I B C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subscription of a financial product; or ( i) selling, providing, or issuing stored value or payment instruments or providing payment services; 5. Sub-section (17) of Section 3 of the I B Code defines financial service provider as under: 3. In this Code, unless the context otherwise requires,- ( 17) financial service provider means a person engaged in the business of providing financial services in terms of authorisation issued or registration granted by a financial sector regulator; 6. Sub-section (18) of Section 3 of the I B Code defines the financial sector regulator as under: 3. In this Code, unless the context otherwise requires,- ( 18) financial sector regulator means an aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (1) of section 2 of the Limited Liability Partnership Act, 2008, or any other person incorporated with limited liability under any law for the time being in force but shall not include any financial service provider; ( emphasis added) ( 8) corporate debtor means a corporate person who owes a debt to any person; 9. In the present case, we find that an Inter Corporate Deposit Agreement was reached between M/s. Jindal Saxena financial Services Private Limited (1st Respondent) and M/s. Mayfair Capital Pvt. Ltd. (2nd Respondent) which is a non-banking financial company. M/s. Mayfair Capital Pvt. Ltd. had undertaken a financial services by accepting deposit from M/s. Jindal Saxena financial Services Priv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned order dated 8th January, 2018 initiating insolvency corporate resolution process against M/s. Mayfair Capital Pvt. Ltd. , a financial service provider (non-banking financial company). 12. As the appellant was not a party before the Adjudicating Authority and the order was passed without notice to M/s. Mayfair Capital Pvt. Ltd. (2nd Respondent), which has not been disputed by the 1st respondent and the appeal has been preferred immediately after the impugned order, this appeal cannot be dismissed on the ground of limitation having filed immediately when the appellant came to know the same. The impugned order having passed against the financial service provider (non-financial company), is fit to be set aside. Accordingly, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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