Page 89 - IBC Orders us 7-CA Mukesh Mohan

Order Passed Under Sec 7
Hon’ble NCLT Principal Bench

overwhelming evidence available in the shape of the default and name of the resolution professional has

also been clearly specified.

32. Ms. Shroff has placed reliance on the observations made by this Bench in para 14 of the judgment

rendered in the case of Bank of India v. Tirupati Infraprojects Pvt. Limited. This Bench has observed that
if there was any discrepancy in calculation then it does not materially affect the admission of the such
application. We observed that the Adjudicating Authority is not entrusted with any function to determine

the amount of default and once the default has occurred involving rupees one lac or more in terms of
Section 4 of IBC then one of the requirements for initiating the insolvency process stand satisfied. The

objection of this nature concerning discrepancy in calculation of the amount would surely be maintainable
before the Committee of Creditors. It was further observed that once default in terms of Rule 3(12) of
IBC is established and all other requirements are fulfilled the Insolvency Resolution Process must be

triggered.

33. Having heard the learned counsel for the parties and having perused the paper book with their

able assistance it would be imperative to examine the provisions of Section 7(2) and Section 7(5) of IBC
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, by order, admit
such application; or

(b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary
proceeding is pending against the proposed resolution professional, it may, by order, reject such

application:

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