NCLT JUDGEMENT ON SECTION 3(11), 3(12), 3(6), 4, 5(7), 5(8), 5(21), 7, 7(1), 7(2), 7(5), 7(5)(A), 9, 10, 14, 14(2), 14(3), 15, 17, 18, 31(1), 33, 238 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 AND RULE 4, 4(3) OF THE INSOLVENCY AND BANKRUPTCY (APPLICATION TO ADJUDICATING AUTHORITY) RULES, 2016

  

NAME		MOBILE NO.	E-MAIL I’D
RANJEET KUMAR		8383098478, 9667769795	rk@courtkutchehry.com
JAI THAKUR		8130703334, 9355723300	jai.thakur@courtkutchehry.com
RAJEEV RANJAN		9334553249	rajiv.ranjan@courtkutchehry.com
ASHOK MISHRA		9718327746	sales@courtkutchehry.com
RAVI KUMAR			ravi.singh@courtkutchehry.com

Power Finance Corporation Limited Vs. South East U.P. Power Transmission Company Limited, (2020) 07 NCLT CK 0087

NCLT allowed the petition filed by the petitioner, under Section 7 of the Insolvency & Bankruptcy Code, 2016, (hereinafter referred to as the "Code"), praying for initiation of Corporate Insolvency Resolution Process of the Corporate debtor on grounds of its inability to liquidate its financial debt. While allowing the petition NCLT held that this Adjudicating Authority finds that as the corporate debtor was under obligation to pay the interest and principal amount in terms of Facility Agreement in 48 equal quarterly instalments and interest at the prescribed rate on a quarterly basis from the date of disbursement under the Facility Agreement and the corporate debtor has failed of fulfil its payment obligation thus default has occurred on part of corporate debtor and the applicant has also attached several documents to prove the existence of debt and default. Thus, this Adjudicating Authority is of the view that there is a default as the corporate debtor has failed repay the amount due to the financial creditor. Referring to the decision of Hon'ble Supreme court in Innoventive Industries Ltd. v. ICICI Bank, (2017) 08 SC CK 0137 it was held that "...The moment the Adjudicating Authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete...." Further in the matter of Karan Goel v. M/s. Pashupati Jewellers & Anr. Company Appeal (AT) (Insolvency) No. 1021 of 2019 dated 01.10.2019, (2019) 10 NCLAT CK 0001 stated: "...it is clear that once the Adjudicating Authority is satisfied on the basis of record that the debt is payable and there is default, the Adjudicating Authority is required to admit the application."