Page 90 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Principal 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."

34. A conjoint reading of the aforesaid provision would show that form and manner of the application
has to be the one prescribed by the authorities. The application is required to be accompanied by the
prescribed fee. It is evident from the record that the application has been filed on the proforma prescribed

under Rule 4 (2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016
read with Section 7 of IBC. Where the Adjudicating Authority is satisfied that a default has occurred and

the application under sub-section 2 of Section 7 is complete; and no disciplinary proceedings were
pending against the proposed Interim Resolution Professional then the Adjudicating Authority may admit
such application. In the present case, the application was filed on 05.07.2017 and even amendment was

sought by C.A. No. 203(PB)/2017 on 17.07.2017. The objections and reply was filed on 18.07.2017.

35. Keeping in view the aforesaid facts it is required to be seen as to what was the amount of default

and when it occurred. According to amended part IV of the application filed on Form-1 it is clearly stated
that the amount in default is Rs. 4295,96,16,611 (Indian Rupees Four Thousand Two Hundred Ninety
Five Crores Ninety Six Lakhs Sixteen Thousand Six Hundred and Eleven Only) for the Indian Rupee

Loans and US$ 49,684,877 (United States Dollars Forty Nine Million Six Hundred Eighty Four Thousand
Eight Hundred and Seventy Seven Only) towards the Foreign Currency Loan. The date of default is
disclosed at pgs. 143-156 as different amount of default has occurred on different dates in respect of

different nature of loans. For example, in respect of Term loan (GMC) 125 Cr the date of default in
repayment of principal is 30.06.2017 and in respect of Corporate Loan (1000 Cr) the default occurred on

30.09.2016 so on and so forth. The whole details are available from pgs. 143 to 156. We are satisfied that
the default has occurred in repayment of loan. Hence, one more requirement stand fulfilled as per the
provisions of Section 7(5)(a) read with Section 3(12) of IBC. We also satisfied that the Financial Creditor

has given the facility of loan to the Financial Debtor and is covered by the provisions of Section 5(7) and
(8) of IBC. Mr. Vijay Kumar V Iyer (IBBI/IPA-001/IP-P00261/2017-18/10490) has been proposed as in
Interim Resolution Professional who has filed his consent with necessary disclosures made.

36. The objection raised by the learned counsel on behalf of respondent with regard to discrepancy in
the amounts of the default claimed would not survive because we have accepted the application C.A. No.

203(PB)/2017 incorporating the correct figures. In any case the objection would not survive in view of
our observation in para 14 of the judgment rendered in the case of Bank of India v. Tirupati Infraprojects
Pvt. Limited which reads as under:-

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