TMI Blog2017 (12) TMI 1652X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 7 of the ‘I&B Code’. It was held in the case of M/s. Innoventive Industries Ltd. Vs. ICICI Bank & Anr [2017 (9) TMI 58 - SUPREME COURT OF INDIA], that in case a ‘Corporate Debtor’ commits a default of a financial debt, the Adjudicating Authority has merely to see the records of the information utility or other evidence produced by the ‘Financial Creditor’ to satisfy itself that a default has occurred. The Hon’ble Supreme Court further held that “it is of no matter that the debt is disputed so long as the debt is “due” i.e payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date.” - In the present case, the Appellant raised dispute and pleaded mismatch of debt amount, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as I B Code ) has been admitted, order of moratorium has been passed and Interim Resolution Professional has been appointed with directions as mentioned therein. 2. The main ground taken by the Appellant is that there is mismatch of figures and dates of default , as apparent from the face of the application and therefore, petition under Section 7 of the I B Code preferred by the Respondents was fit to be rejected. 3. Learned counsel appearing on behalf of the Appellant submitted that there is a mismatch of figures and dates of default relating to dues of 2nd Respondent- State Bank of India, as quoted below: - 1. STATE BANK OF INDIA (R2): ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. See SBI S.13(2), Sarfeasi Notice (Pg.177) dt. 17.12.15 wherein NPA dt. 26.08.15 Rs.10,98,76,416.00 under 2 facilities namely: CC ₹ 620,21,860 Inland LC Devolved ₹ 4,78,54,556 2.1 For CC Facility: Description Amount The breakup of the CC facility as on Pg. 106, the balance outstanding amount on date of NPA (26.08.15) ₹ 5,98,81,058.19 See Statement of Account @ Pg. 222, the Outstanding amount filed by CBI on 31.08.15 ₹ 588,77,744.19 And on 19.08.15 ₹ 5,81,63,324.19 2.1 For Inland LC Facility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference before the erstwhile Board for Industrial and Financial Reconstruction (BIFR) under the provision of the Sick Industrial Companies (Special Provisions) Act, 1956 ( SICA ) (now repealed), based on its audited accounts for the financial year ended on 31st March, 2015 was calculated. It was brought to our notice that the Respondents have also taken steps under Section 13(2) of the SARFAESI Act against the Corporate Debtor as well as the guarantors to repay entire outstanding as on 16th December, 2015. The parties have moved before the Debt Recovery Tribunal-II, Chennai, being O.A. No. 114/2017, seeking recovery of the outstanding loan amount. The said matter is pending before the Debt Recovery Tribunal. According to learned couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the year 2017, which has been calculated, taking into consideration the interest payable in the meantime and the amount, if any, recovered under other proceedings. Apart from the aforesaid fact, we are of the view that mere mismatch of the figures will ipso facto not invalidate the order initiating Corporate Insolvency Resolution Process under Section 7 of the I B Code . 12. The provisions of Sections 7 and 9 of the I B Code fell for consideration before the Hon ble Supreme Court in M/s. Innoventive Industries Ltd. Vs. ICICI Bank Anr.─ 2017 SCC OnLine SC 1025 , wherein the Hon ble Supreme Court observed and held: 29. The scheme of Section 7 stands in contrast with the scheme under Section 8 where an operational credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the records of the information utility or other evidence produced by the Financial Creditor to satisfy itself that a default has occurred. The Hon ble Supreme Court further held that it is of no matter that the debt is disputed so long as the debt is due i.e payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date. 14. In the present case, the Appellant raised dispute and pleaded mismatch of debt amount, but it has not been disputed that some debt is due and is payable to the Financial Creditor and the Corporate Debtor has defaulted in making such payment. 15. For the reasons aforesaid, no interference is called for against the impugned order dated 4th September, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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