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2019 (1) TMI 1718

..... porate debtor’ is from the state of ‘Odisha’ and the matter may be transferred to ‘National Company Law Tribunal’, Cuttack Bench which is likely to be opened on 22nd January, 2019. Therefore, the order under Section 7 required to be passed before the case is transferred and thereby prolongs. It is needless to say that if there is a ‘debt’ and ‘default’ and the record is otherwise complete, the application is to be admitted. On the other hand, if there is no ‘debt’ payable in law or in fact then it is to be rejected. In that view of the matter we are not passing any specific directions, as the matter will be taken up on 16th January, 2019 we expect that the Adjudicating Author .....

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..... he state of Odisha and the matter may be transferred to National Company Law Tribunal , Cuttack Bench which is likely to be opened on 22nd January, 2019. Therefore, we are of the view that order under Section 7 required to be passed before the case is transferred and thereby prolongs. It is needless to say that if there is a debt and default and the record is otherwise complete, the application is to be admitted. On the other hand, if there is no debt payable in law or in fact then it is to be rejected. In that view of the matter we are not passing any specific directions, as the matter will be taken up on 16th January, 2019 we expect that the Adjudicating Authority (National Company Law Tribunal), Kolkata will pass appropriate order either .....

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..... his, an operational creditor means a person to whom an operational debt is owed and an operational debt under Section 5(21) means a claim in respect of provision of goods or services. 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 c .....

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..... ection (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be. 29. The scheme of Section 7 stands in contrast with the scheme under Section 8 where an operational creditor is, on the occurrence of a default, to first deliver a demand notice of the unpaid debt to the operational debtor in the manner provided in Section 8(1) of the Code. Under Section 8(2), the corporate debtor can, within a period of 10 days of receipt of the demand notice or copy of the invoice mentioned in sub-section (1), bring to the notice of the operational creditor the existence of a dispute or the record of the pendency of a .....

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