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TMI Blog2019 (5) TMI 1935X X X X Extracts X X X X X X X X Extracts X X X X ..... ving admitted on 30th October, 2018 by the Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, Chandigarh, the present appeal has been preferred by 'Mr. Ashok Oswal', Shareholder of the Corporate Debtor. 2. The case of the Appellant is that the Corporate Debtor to meet its working capital requirement, availed the Export Packing Credit Facility and Cash Credit Facility from UCO Bank, Civil Lines, Ludhiana. The Bank granted Foreign Bill Negotiation Facility to the Corporate Debtor and as per the Export Packing Credit Facility, the Corporate Debtor was to be repaid by discounting of the foreign export bills of the Corporate Debtor with the Bank, backed by letter of credits issued by reputed international banks, so as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the application was incomplete even after the Bank was given numerous opportunities to correct it. Learned counsel for the Appellant submitted that the date of default was wrongly indicated as December, 2015 and also shown wrong date of NPA. The IBC Petition with details of charge was not placed on record. 6. Learned counsel for the Appellant submitted that the Adjudicating Authority failed to notice that the account of the Corporate Debtor was wrongly declared as NPA and the petition under Section 7 was liable to be dismissed. The Adjudicating Authority also failed to consider that there is disputed question relating to amount as shown in the Section 7 petition. It was submitted that in absence of definite amount and date of default, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 applicant financial creditor. Under Section 7(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. ...x...x...x... 30. On the other hand, as we have seen, in the case of a corporate debtor who 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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