Page 461 - IBC Orders us 7-CA Mukesh Mohan

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

entitled to make an application for initiating corporate insolvency process in terms of Section 7(1) of the
Code which reads as under-

"A financial creditor either by itself or jointly with other financial creditors may file an application for
initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating

Authority when a default has been occurred.

Explanation: For the purposes of this sub-section, a default includes a default in respect of a financial debt
owed not only to the applicant financial creditor but to any other financial creditor of the corporate

debtor."

15. The other submission of the 'Corporate-Debtor' that a proposal has been made to the petitioner bank
requesting to restructure the loan by proposing to deposit ` 1,25,00,000/- cannot be accepted as the

account of the petitioner has been declared N.P.A. whereupon recall notice dated 31.01.2017 (Annexure
A-4) was issued. We are of the view that there cannot be any preferential treatment to the petitioner in
comparison with the claims of other financial-creditors as all would be constituting the "Committee of

Creditors", in the event of an order of admission.

16. The other contention of learned counsel for the 'Corporate-Debtor' was that as per paragraph 7 of Part-
V of Form No. 1 the 'Financial Creditor' is required to attach copies of the entries in accordance with the

Bankers' Books Evidence Act. This defect was noticed by the Tribunal when the matter was listed on
11.07.2017 and seven days time was granted for removal of the same. However, the petitioner bank filed
the fresh account statements in the Tribunal on 20.07.2017 i.e. more than seven days from 11.07.2017 and

therefore, the application may be rejected. This contention of the learned counsel is based on proviso to
Section 7(5) of the 'Code' which reads as under:-

"Where the Adjudicating Authority is satisfied that-

(a) a default has occurred and the application under sub-section (2) is complete, and there is no

disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit
such application; or

(b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary

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

461