Page 392 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Allahabad Bench
(b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary

proceeding is pending against the proposed resolution professional, it may, by order reject such
application:

Provided that the Adjudicating Authority shall, before rejecting the application under clause (b) of sub-
section (5), give a notice to the applicant to rectify the defect in his application within seven days of

receipt of such notice from the Adjudicating Authority.

(6) The corporate insolvency resolution process shall commence from the date of admission of the
application under sub-section (5).

(7) The Adjudicating Authority shall communicate--

(a) the order under clause (a) of sub-section (5) to the financial creditor and the corporate debtor;

(b) the order under clause (b) of sub-section (5) to the financial creditor, within seven days of admission
or rejection of such application, as the case may be.

3. From the perusal of documents annexed with the present petition, it is evident the default has occurred,
that meets the requirement of Section 3(11) & (12) of the Code.

Section 3(11) and 3(12) of the Code which reads as under:

(11) "debt" means a liability or obligation in respect of a claim which is due from any person and includes
a financial debt and operational debt;

(12) "default" means non-payment of debt when whole or any part or instalment of the amount of debt has

become due and payable and is not repaid by the debtor or the corporate debtor, as the case may be;

4. The Financial Creditor has also filed the Written Communication sent by the proposed Interim
Insolvency Resolution in Form No. II informing that there is no disciplinary proceeding pending against
the proposed IRP.

5. As, the total amount of default now comes to Rs. 526,11,40,827/- (Rupees Five hundred twenty-six
crores eleven lakh forty thousand eight hundred twenty-seven) which is in excess of Rs. 1,00,000/-
(Rupees One Lakh only). Hence, the present application to initiate the Corporate Insolvency Resolution

Process (as per the I & B Code, 2016) in respect of Corporate Debtor Company.

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