Page 462 - IBC Orders us 7-CA Mukesh Mohan

Order Passed under Sec 7
By Hon’ble NCLT Chandigarh Bench
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."

17. Leaned counsel for the 'Financial-Creditor" however, submitted that though all the particulars of
application in Form No. 1 were complete, yet as an abundant caution the petitioner's counsel filed

application for condonation of delay of two days in filing the statement of account duly certified under the
Bankers' Books Evidence Act, on the ground that the counsel for the applicant bank was admitted in the

hospital on 14.07.2017 and had undergone surgery of intestine on 15.07.2017.

18. Having given thoughtful consideration, we are of the view that as per paragraph 7 Part-V of Form No.
1 the bank is required to file copies of the Entries in the Banker's Books maintained in accordance with
the Bankers Books Evidence Act, 1891 which the 'Financial-Creditor' had furnished but to make the said

statements admissible per se necessary certificate was appended on the statements of account furnished
with the affidavit dated 19.07.2017 of the Authorised Signatory of the bank as noticed in the order dated

11.07.2017. The requirement of the Paragraph 7 Part-V of Form No. 1 precisely is that the bank has to file
copies of the account statements which should be maintained as per the Bankers Books Evidence Act,
1891 and to attach copies thereof. The same were accordingly attached with the application originally.

The 'Corporate-Debtor' being in default in depositing the financial debt was not in fact disputed rather
attempt was made for restructuring of the loan by offering to deposit an amount of ` 125 lacs which is not
permissible as already observed.

19. In view of the above discussion and perusal of the record, we are satisfied that the 'Financial-Creditor'
has proved by overwhelming evidence that default has occurred, which meets the requirement of Section
3(11) & 12 read with Section 7(3)(a) and Section 7(5) of the Code. The 'Corporate-Debtor' in fact has not

disputed that it is in default of making repayments. We further find that the application is complete in all
respects as the Insolvency Professional, Mr. Navneet Gupta, CA has also been proposed.

20. As a sequel to the above discussion, this petition is admitted and Mr. Navneet Gupta, CA, # 1598,

Level-I, Sector 22-B, Chandigarh whose name also figures in the latest list of Insolvency Professionals
issued by the Insolvency & Bankruptcy Board of India is appointed as an Interim Resolution Professional.

21. In pursuance of Section 13(2) of Code, we direct that public announcement shall be immediately
made by the Interim Resolution Professional with regard to admission of this application under Section 7

of the Code. We also declare moratorium in terms of Section 14 of the Code. A necessary consequence of

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