TMI Blog2019 (2) TMI 1834X X X X Extracts X X X X X X X X Extracts X X X X ..... Amit Dhall and Mr. Neeraj Malik, Advocates. For the Respondents: : Mr. Kunal Tandon, Ms. Niti Jain and Ms. Richa, Advocates. ORDER This appeal has been preferred by Mr. Naresh Kumar Dhingra and Others , Director of M/s JMD Oil Pvt. Ltd. (Corporate Debtor) against order dated 11th December, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi whereby and whereunder the application under Section 7 filed by Indian Overseas Bank (Financial Creditor) as member of consortium of the banks has been admitted, order of moratorium passed and Interim Resolution Professional has been appointed. 2. Learned counsel appearing on behalf of the Appellant submits that the person who signe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... editors and operational creditors. A financial creditor has been defined under Section 5(7) as a person to whom a financial debt is owed and a financial debt is defined in Section 5(8) to mean a debt which is disbursed against consideration for the time value of money. As opposed to this, 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 applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to 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. 3. As it is apparent that there is debt due payable by the Corporate Debtor in fact and they have not disputed it and the records being complete, we hold that the Adjudicating Authority rightly admitted the application under Section 7 of I B Code ..... X X X X Extracts X X X X X X X X Extracts X X X X
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