TMI Blog2018 (12) TMI 1310X X X X Extracts X X X X X X X X Extracts X X X X ..... s provision can only be filed by or against the corporate debtor. That in the present case, the intervention application has been filed against the financial creditor. Furthermore, sub-section (c) of section 60(5) has no applicability at the stage of adjudication on admissibility of an application filed under Section 7 of IB Code as this sub-section pertains to questions of priorities, facts or law arising out of or in relation to the Insolvency Resolution or Liquidation proceedings of the corporate debtor. In the above facts and circumstances as discussed above, we are of the considered view that Intervention Application do not hold merits, deserves to be rejected and stands rejected accordingly. - Inv. P 73 of 2018 in CP (IB) NO. 232/7/NCLT/AHM/2018 - - - Dated:- 19-11-2018 - MS. MANORAMA KUMARI, MEMBER JUDICIAL MR HARIHAR PRAKASH CHATURVEDI MEMBER JUDICIAL For The Appearing Parties : Rashesh Sanjanwala, Sr. Adv., Ms. Gargi R. Vyas, Parth Shah, Maulik Nanavati and Ronith Joy, Adv. ORDER Per Ms. Manorama Kumari, Member (Judicial) That this Application is filed by the Applicant/intervener under Section 60(5) of the Insolvency and Bankruptcy Code, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dentify plausible solution to the issues currently faced by the JBF Group. Sometime in the month of April the applicant came to know that the financial creditor has filed company petition before this bench. Consequent upon which the applicant had been in talk with the financial creditor as well as other stakeholder in the corporate debtor for restructuring the loan/facility provided to the corporate debtor under the facility agreement. Accordingly, in the month of May applicant addressed a letter to the financial creditor with a proposal for restructuring the JBF Group. 4. It is further submitted by the learned lawyer of the applicant that applicant also forwarded term sheet for the proposed restructuring of the JBF group, to the present creditor and undertook to use commercially endeavors to facilitate a financing of the external commercial borrowing facilities extended by the lenders (including financial creditor) to the corporate debtor. In the said letter it is also offered that, as part of the proposed restructuring of the JBF Group, KKR had proposed that the financial creditor (along with the other member of the consortium led by the financial creditor) agreed to accept th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial creditor, whereas the proposed financing would holistically resolve the pending issues whereby the lender would receive the full payment of the principal outstanding amount under the facility agreement and the applicants interest would also be preserved. 8. That it is further submitted by the applicant that the adjudication of the present application is necessary to prevent the financial creditor from misusing the CIRP for its benefit at the cost of the other stakeholders of the corporate debtor and therefore, the relief sought for by the applicant in the instant application be granted. The applicant further submitted that if the company petition is admitted, then all the business/pending projects would be prejudicially affected. Under such situation the very purpose of the Code could be defeated and would not protect and preserve the value of the asset of the corporate debtor. 9. That on receipt of the application, the respondent appeared and objected the application so filed by the applicant. It is submitted by the learned lawyer of the respondent that the application filed by the applicant is bad and is not tenable in the eye of law. It is further submitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) any claim made by or against the corporate debtor or corporate person, including claims by or against any of its subsidiaries situated in India; and (c) any question of priorities or any question of law or facts, arising out of or in relation to the insolvency resolution or liquidation proceedings of the corporate debtor or corporate person under this Code 14. That on plain reading of the relevant portion of Section 60(5) it is clear that an application/proceeding under this provision may only be filed by or against the corporate debtor. But in the instant case, intervention application admittedly been filed against the financial creditor (not against the corporate debtor). Further, sub-section (c) of Section 60(5) has no applicability at the stage of adjudication on admissibility of application filed under Section 7 of IB Code, as sub-section 60(5)(c) pertains to, any question of priorities or any question of law or facts, arising out of or in relation to the insolvency resolution or liquidation proceedings of the corporate debtor or corporate person under this Code . Thus when the proceedings is/are initiated by the financial creditor under Section 7 of the IB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority shall then communicate the order passed to the financial creditor and corporate debtor within seven days of admission or rejection of such application, as the case may be. 17. Thus it is clear that the third party (being an entity other than the financial creditor/corporate debtor) is not offered the right to be heard and/or to intervene in a proceeding initiated under Section 7 of the IB Code as affirmed by the Hon'ble Supreme Court. That from the aforesaid decision it is clear that the Adjudicating Authority is only to satisfy that the default has occurred and that the Corporate debtor is entitled to point out that the default has not been occurred in the sense that the debt is not due. That no other person has a right to be heard at the stage of admission of the application under Sections 7 and 9 of the IB Code including the shareholders or the personal guarantor etc. 18. That in view of the facts and circumstances narrated above, it is clear that any application/proceeding under this provision can only be filed by or against the corporate debtor. That in the present case, the intervention application has been filed against the financial creditor. 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