Page 55 - IBC Orders us 7-CA Mukesh Mohan

Order Passed Under Sec 7
Hon’ble NCLT Principal Bench

any function to determine the amount of default. Once the default has occurred involving rupees one lac

or more in terms of Section 4 of the Code one of the requirements is satisfied and secondly any objection
with regard to amount would be maintainable before the Committee of Creditors. Once default in terms of
Rule 3 (12) of the Code is established and all other requirements are fulfilled the Insolvency Resolution

Process has to be triggered.

15. On behalf of 'Corporate Debtor' still another objection has been raised which is based on a

judgment of the National Company Law Appellate Tribunal rendered in the case of JIC Jute Mills
Company Limited v. M/s Surendra Trading Company, Company Appeal (XI') (Insolvency) No. 09 of

2017 decided on 01.05.2017. Placing reliance on pare 51 of the judgment learned counsel has argued that
seven additional days' time could begranted to the 'Financial Creditor' for removing the defects and it is
mandatory. On the aforesaid principles, it has been submitted that the defects were pointed out on

30.05.2017 and the affidavit removing the defect was filed on 07.06.2017. According to the learned
counsel there is delay of one day in filing the objection whereas learned counsel for the petitioner has
argued that the there is no delay if language of Section 7 of the Code is considered.

16. we have thoughtfully considered the rival submissions advanced by the learned counsel for the
parties and are of the view that in order to arrive at the correct conclusion it would be necessary to

examine the provisions of Section 7 (2) and 7 (5) of the Code which read as under:

"Initiation of corporate insolvency resolution process by financial creditor.

7 (1) ................

7 (2) The financial creditor shall make an application under sub-section (1) in such form and manner and
accompanied with such fee as may be prescribed

7 (3) ..................

7 (4) .................

7 (5) 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, be order, admit
such application; or

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