TMI Blog2018 (6) TMI 1697X X X X Extracts X X X X X X X X Extracts X X X X ..... e S.J. Mukhopadhaya, Chairperson And A.I.S. Cheema, Judicial Member Pallav Sisodia, Sr. Adv., Pramod B. Agarwala, Aayush Agarwala, Anuj Agarwala, Mayur Thorat and Shashank Khurana, Advs. for the Appellant. Aditya Dewan, Adv. and Ms. Udita Singh, Adv. for the Respondent. ORDER 1. This appeal has been preferred by 'Mr. Nayan Shah' one of the Shareholder and Director of the Corporate Debtor (M/s Neptune Ventures and Developers Private Limited) against order dated 24th May, 2018 passed by Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai in CP No.1640/IBC/NCLT/MB/MAH/2017, whereby and whereunder the application preferred by the 1st Respondent - 'Mr. Viral Rajarashi Mehta' (Operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has paid and for the rest of the amount a cheque has been received by the 1st Respondent. 5. Hon'ble Supreme Court in Innoventive Industries v. ICIC Bank [2017] 84 taxmann.com 320/143 SCL 625 while considered the provisions of Sections 7 and 9 of I B Code observed and 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 Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (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-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, therefore, it can be accepted that there was an existence of dispute about the payment of debt. 8. For the reasons aforesaid, and the fact that parties have settled the claim and part payment has been made and cheque for rest of the amount has been handed over to the Counsel for the 1st Respondent, we set aside the order dated 24th May, 2018 passed by Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, in CP No.1640/IBC/NCLT/ MB/MAH/2017 and pass following directions:- 9. In effect, order(s) passed by Adjudicating Authority appointing 'Interim Resolution Professional', declaring moratorium, freezing of account and all other order (s) passed by Adjudicating Authority pursuant to impugned order and action, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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