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TMI Blog2022 (9) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : Mr. Ramji Srinivasan, Sr. Advocate with Mr. Agam H. Maloo, Mr. Abhinav Agarwal, Ms. Shruti Pandey and Mr. Kaustubh Kandpile, Advocates ORDER Ashok Bhushan, J: 1. This Appeal has been filed by the Financial Creditor against the Order dated 11th July, 2022 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court-III) in CP(IB) 498/MB/2020. 2. Brief facts of the case necessary to be noticed for deciding this Appeal are: The Appellant-Financial Creditor has sanctioned Term-Loan of Rs. 10.5 Crores and Rs. 8.5 Crores to the Corporate Debtor on 29th July, 2013. On 17th March, 2017 and 25th February, 2017 respectively the Loan Account of the Corporate Debtor in respect to above noted sanctione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il Nayyar, Sr. Advocate appearing for the Appellant submits that the Adjudicating Authority committed error in disposing of the Company Petition whereas the Financial Creditor has expressed its unwillingness to settle the matter with the Corporate Debtor. It is submitted that the Adjudicating Authority could not have permitted the Corporate Debtor to deposit the amount in the Bank Account of the Financial Creditor. 4. Mr. Ramji Srinivasan, Sr. Advocate for the Respondent refuting the submissions of Learned Sr. Counsel for the Appellant submits that the Learned Counsel for the Financial Creditor on 11th July, 2022 made the statement that they are not willing to settle the matter since they have no confidence on the Corporate Debtor in view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ajani, Counsel appearing for the Financial Creditor submitted that the Financial Creditor is not willing to settle the matter as they have no confidence on the Corporate Debtor in view of the past conduct of the Corporate Debtor..." 7. Immediately after noticing the above statement of Learned Counsel for the Financial Creditor, the statement of Learned Counsel for the Corporate Debtor has been recorded to the following effect: "...After making the above statement by counsel appearing for the Financial Creditor, Mr. Prakhar Tandon, Counsel appearing for the Corporate Debtor on instructions assured the Financial Creditor as well as this Bench that his client is ready and willing to deposit the entire amount of Rs. 15,79,41,658/- claimed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Supreme Court, Section 7 Application was admitted by the Adjudicating Authority against which an Appeal was filed before the NCLAT where the prayer to stay the initiation of Section 7 Proceeding was refused. Challenging the Order of the Appellate Tribunal, the Appeal was filed before the Supreme Court where Hon'ble Supreme Court had occasion to consider the ambit and scope of Section 7 of the IBC, 2016. 11. Hon'ble Supreme Court in paragraph 56 of the Judgement noticed the following: "56. Both, the Adjudicating Authority (NCLT) and the Appellate Tribunal (NCLAT) proceeded on the premises that an application must necessarily be entertained under Section 7(5)(a) of the IBC, if a debt existed and the Corporate Debtor was in defau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, pending in this Court, order of APTEL referred to above and the over all financial health and viability of the Corporate Debtor under its existing management. 62. As pointed out by Mr. Gupta, Legislature has, in its wisdom, chosen to use the expression "may" in Section 7(5)(a) of the IBC. When an Adjudicating Authority (NCLT) is satisfied that a default has occurred and the application of a Financial Creditor is complete and there are no disciplinary proceedings against proposed resolution professional, it may by order admit the application. Legislative intent is construed in accordance with the language used in the statute." 13. In the facts of the above case, the Supreme Court set aside the Order of the Adjudicating Authority and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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