Page 472 - IBC Orders us 7-CA Mukesh Mohan

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

6. I have heard the learned counsel for the petitioner and perused the record and find that the
petitioner having not removed the above defect pointed out in the order dated 25.07.2017 within
the mandatory period of seven days, the petition is fit to be rejected. The principle of law on the

subject has been quite well settled by the Honble National Company Law Appellate Tribunal in
"Company Appeal (AT) No. 09 of 2017, ..11( Jute Mills Company Limited Vs. M/s Surendra

Trading Company", wherein it was held that the seven days' period for the rectification of the
defects as stipulated under the proviso to the relevant provisions of Sections 7, 8, or 9 is required
to be complied with by the Corporate Debtor, whose application otherwise being incomplete is fit

to be rejected. It was thus held that the provisos to the aforesaid sections to remove the defects
within seven days are mandatory and on failure to do so, the application is fit to be rejected,

7. As per col. I of Par t-V of Form No. 1 prescribed under the Rules, the Financial Creditor is
supposed to file copies of the entries in a banker's book in accordance with the Bankers Books
Evidence Art, 1891. Despite the defect having been pointed out, the compliance has not been

made.

8. There are other factors which disentitle the petitioner to an order of admission. The first is that as
per sub-rule (2) of Rule 4 of the Rules, the copy of the petition filed with the Adjudicating
Authority is to be sent by registered post or Speed Post at the registered office of the Corporate

Debtor. The Postal Receipt at page 327 of the Paper Book shows that it was addressed to Mr.
Sanjay Sinha and not to the Corporate Debtor itself though Mr. Sanjay in ha was authorised as
Managing Director of the Corporate Debtor for getting the credit facility from the petitioner bank.

I am of the view that when the petition under Section 7 of the Code is to be filed, ifs copy has to
be sent to the Corporate Debtor at its registered office.

9. The second aspect is that the instant petition has been filed by the petitioner-Financial Creditor
under the signatures of Mr. Neeiesh Utturkar and the Chief Executive Officer of the Financial

Creditor has appointed Mr. Neelesh Utturkar as the Substitute Attorney for and on behalf of the
Petitioner-Financial Creditor. Mr. Neetesh Utturkar aforesaid has given the letter of authority in
favour of the Advocates through whom the instant petition has been filed authorising them to

make, file, sign, engage professionals and to do all such things, deeds and acts in connection with
the application to be filed before the National Company Law Tribunal under Section 7 of the

Insolvency and Bankruptcy Code. This Power of Attorney is at Annexure A-6 but interestingly

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