Page 414 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Allahabad Bench
Further, the Hon'ble NCLAT, in the very same case before, it has ruled that the 'Adjudicating

Authority' on receipt of the application under Section 7 sub-section (2) is required Lo ascertain existence
of default on the basis of evidence furnished by the Financial Creditor under sub-section (3). The
'adjudicating authority' is required to satisfy three things Occurrence of default; application is complete

and no disciplinary proceedings is pending against the proposed Insolvency Resolution Professional.
Beyond the aforesaid practice, this 'Adjudicating Authority' is not required to look into any other factor;

including the question whether permission or consent is obtained from one or other authority, including
1/w JLF (Joint Lender's forum)."

Further, the Hon'ble Allahabad High Court in its recent decision in the matter of Sanjeev Shriya
v/s State Bank of India & 6 Ors. (Writ-C No. 30285/2017) and in connected case Deepak Singhania &
Anr. v/s State Bank of India (Writ-C No. 30033 of 2017) has also held that the provision of I & B Code

would prevail over the provisions of DRT proceedings by observing (in the relevant para nos. 21,24, 29,
31, & 32 of the judgment) as such:-

21. Section 60 .simulates that they Adjudicating A mill o thy, in relation to insolvency
resolution and liquidation for emporate per including corporate debtors and personal
guarapptors thereof; shall be the National Company Law Tribunal having territorial

jurisdiction over die place where the registered office the 7orporate person is located. s
per provisions contained under Section 60 qf the IBC, 201 the National Company Law
Tribunal shall he die Adjudicating A tiff, on for Insolvency resolution and I liquidation of

corporate debtors and also lays down the criteria for establishing the territorial
jurisdiction of the Tribunal. The insolvency resolution or bankruptcy proceedings

relating to a personal guarantor of a corporate debtor shall also be filed before the
National Company Law Tribunal

24. The object of [SC. 2016 is. categorical and as per provisions contained under Section
60(1) the Adjudicating Authority, in relation to in resolution and liquidation fir corporate
persons including corporate debtors and personal guarantors. thereof shall be the

National Company Law Tribunal. In the present matter, ,leinrittedly the proceeding has
been initiated under the /BC, 1 and the Moratorium Under Section 14 of the IBC, 201 has
already been issued b the NUE The NCLT is already ceased with the process of

Insolvency resolution against the company (in 14.) under IBC, 201 and moreover, the SRI
has also put their appearance in the said proceedings regarding its claim. Ai no point of

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