Page 451 - IBC Orders us 7-CA Mukesh Mohan

Order Passed Under Sec 7
By Hon’ble NCLT Chandigarh Bench

along with the entire paper book was received by the "Corporate Debtor". The matter was adjourned for
enabling the respondent to file objections, if any, to the instant petition.

13. On the adjourned date 13.07.2017, Mr. I.P.S. Mangat, Advocate put in appearance for Mr. Jshpuneet
Singh, Advocate for the respondent-Corporate Debtor and filed the power of attorney and later on filed

the resolution of the Board of Directors dated 12.07.2017 along with the objections. The execution of
Agreement dated 01.01.2016 between the parties is admitted. The "Corporate Debtor" has raised the

objections by filing short reply that as per clause 22 of the agreement, the contract is to be governed and
construed in accordance with the English law and disputes from the said agreement were to be settled by
Arbitration in London. It was, therefore, stated that the application is not maintainable before this Forum.

14. On merits, it was alleged that the "Corporate Debtor" issued a legal notice dated 01.11.2016 to the

"Financial Creditor demonstrating mis-representation and the acts of default committed by them, for
which the respondent suffered losses. Copy of the notice is at Annexure R-1. It is further stated that the

credit facility to the tune of USD: 600,000 was extended to the "Corporate Debtor" on payment of 1%
processing charges, but the respondent was never allowed to use full credit extended to it despite various
requests. Further that the "Financial Creditor" established direct contact with the buyers of the

consignment of the goods and has taken payment from them directly, which has not been adjusted nor
appropriate payment released to the respondent.

15. I have heard the learned counsel for the parties and carefully perused the records with their able

assistance.

16. Sub-section (3) of Section 7 of the Code reads as under:-

"The financial creditor shall, along with the application furnish-

(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."

17. The petitioner has proposed the name of Interim Resolution Professional as Mr. Jalesh Kumar Grover,
insolvency Professional registered with the Indian Institute of insolvency Professional of ICAI (IIIPI).

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