Page 83 - IBC Orders us 7-CA Mukesh Mohan

Order Passed Under Sec 7
Hon’ble NCLT Principal Bench

15. When the matter came up for consideration on the first date of hearing on 13.07.2017 learned

counsel for the respondent sought time to file objection. We granted time for filing objection on or before
17.07.2017 and ordered listing of the matter for arguments on 19.07.2017. Accordingly, the objections
have been filed. The first objection is with regard to specific authorization of Mr. Akhilesh Kumar

alleging that the officer did not have authority to initiate and file the application on behalf of the Financial
Creditor. As already observed this objection would not survive in view of the detailed averments made by

the Financial Creditor as noticed in para 14 (supra). Therefore, the objection is not sustainable and is
hereby rejected at the outset. The same has not been raised by the respondents during the course of
arguments.

16. Likewise, another objection has been raised that the present application has been filed which is
contrary to the decision of the Reserve Bank of India issued on 13.06.2017 (press release). It has been

highlighted that the criteria mentioned in the press release dated 13.06.2017 for initiation of Insolvency
and Bankruptcy Process was two folds namely concerning all accounts with fund and non-fund based
outstanding amount greater than Rs. 5000 crore and the account with 60% or more which is classified as

non-performing by banks as on 31.03.2016. It has been emphasized that both the criterion had to be
fulfilled before initiation of any action under the IBC. The lender banks were required to finalize a
resolution plan within six months effective from 13.06.2017 in case the Corporate Debtor does not fall

within the criteria mention. It is claimed that the Corporate Debtor does not fall within the parameters
fixed by the RBI for initiation of Insolvency and Bankruptcy process. The reason disclosed is that on

31.03.2016 the outstanding amount of the Corporate Debtor classified as non-performing was less than
60%. The respondents have also referred to circular dated 26.02.2014 issued by the RBI which required
the banks to identify any incipient stress in the account by creating three sub categories under the Special

Mention Account ("SMA") which are as follows:

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