TMI Blog2019 (1) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... ed loan amounts led to complete failure of the ‘Corporate Debtor’s expansion plan also cannot be taken into consideration to hold that there is no debt due and payable. In the present case, as we find no case made out by the Appellant to interfere with the impugned order, the appeal is dismissed. - Company Appeal (AT) (Insolvency) No. 440 of 2018 - - - Dated:- 30-11-2018 - Mr S.J. Mukhopadhaya, Chairperson And Mr Bansi Lal Bhat, Member (Judicial) For The Appellant : Mr. Rajeeve Mehra, Senior Advocate with Mr. Arvind Kr. Gupta, Ms. Henna George and Ms. Smiti Tewari, Advocates. For The Respondents : None JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. Pursuant to an application filed under Section 7 of the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing on behalf of the Appellant submitted that the rejection of the restructuring plan of the Corporate Debtor was unfair and illegal as the two agencies were not ad idem on their assessment of the restructuring plan. Therefore, according to him, the State Bank of India ought to have appointed a third credit rating agency. 5. Further, according to him, the Corporate Debtor was never informed or made aware that the reports of the credit rating agencies would be essential for the rejection/ approval of its restructuring plan. 6. The Corporate Debtor was also not informed of the criteria and the method being used by the credit rating agencies to evaluate the restructuring plan. 7. It was further submitted that the conduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court held as follows: 28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor- it need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under sub-section (1) in such form and manner as is prescribed, which takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under Rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed form in 5 parts, which requires particulars of the applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or rejection of such application, as the case may be. 13. It is not the case of the Appellant that there is no debt payable in law or in fact. Whatever grounds have been taken relate to legality of order of rejection dated 22nd December, 2017 by the State Bank of India relating to restructuring plan which cannot be decided in the application under Section 7 of the I B Code as the Adjudicating Authority is not authorized/competent to determine the legality of the order of rejection of restructuring plan dated 22nd December, 2017. Whether the refusal to disburse the committed loan amounts led to complete failure of the Corporate Debtor s expansion plan also cannot be taken into consideration to hold that there is no debt due and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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