Page 426 - IBC Orders us 7-CA Mukesh Mohan

Order Passed under Sec 7
By Hon’ble NCLT Chandigarh Bench
7. We have heard learned counsel for the applicant-petitioner and the learned senior counsel for the

'Corporate Debtor' and perused the record with their able assistance.

8. The crucial issue before the Adjudicating Authority would be to ascertain the existence of default from

the records of an information utility or on the basis of other evidence furnished by the financial creditor as
per subsection (3) of Section 7 of the Code The other contentions raised by the learned counsel for the
parties would be discussed in the later part of this order

9. As per sub-section (3) of Section 7 of the 'Code', the 'financial creditor' has to furnish along with the
application-

(a) record of the default recorded with the information utility or such other record or
evidence of default as may be specified;

(b) the name of the resolution professional proposed to act as an interim resolution
professional and

(c) any other information as may be specified by the Board.

The information utility has not so far been formed. Therefore. the existence of default has to be
ascertained from the other record of evidence of default, which is attached with the instant petition.

10. The term 'specified' Js defined in Section 3 (32) of the Code as meaning specified by regulations made
by the Board under this Code and the term 'specify shall be construed accordingly. Under regulation 8 (2)

of the Regulations, the existence of debt due to the financial creditor may be proved on the basis of

(a) the records available with the information utility, if any

(b) other relevant documents, including-

(i) a financial contract supported by financial statements as evidence of the debt;

(ii) a record evidencing that the amounts committed by the financial creditor to the corporate debtor under
the facility has been drawn by the corporate debtor;

(iii) financial statements showing that the debt has not been repaid, or

(iv) an order of a court or tribunal that has adjudicated upon the non-payment of a debt, if any.

11. In part IV of the application in Form 1 against the relevant columns, the applicant-financial creditor
has mentioned the date of sanction of the term loan of Rs. 28.00 crores as per sanction letter !dated

09.01.2010 and further amount of Rs. 3.40 crores sanctioned on 29 11.2012 The total amount in default is

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