Bikram Bhadur Vs Union Bank of India & Anr. (NCLAT Delhi)
NCLAT Delhi held that date of declaration of the loan account/ debt as NPA can be reckoned as the date of default to enable the Financial Creditor to initiate action under Section 7 of the Insolvency and Bankruptcy Code.
Facts- This appeal by a Suspended Director of the Corporate Debtor has been filed challenging the order dated 04.06.2024 passed by the Adjudicating Authority admitting an application u/s. 7 filed by the Union Bank of India. Appellant aggrieved by the order of admission has filed this Appeal.
Notably, on 24.09.2022, Union Bank of India filed a Section 7 application claiming debt of Rs.76,61,82,565/- in default as on 30.06.2022. Date of default was mentioned as 31.03.2021. In Section 7 application, reply was filed by the Corporate Debtor. One of the pleas raised in the reply was that application under Section 7 was barred by Section 10A. Appellant filed its rejoinder-affidavit to the reply. On 07.08.2023, Additional-Affidavit was filed by the bank bringing certain additional facts and documents including the bank statements of the corporate debtor on record.
Adjudicating Authority in the impugned order accepted 31.03.2021 as date of default. Adjudicating Authority held that the amount of default is more than the threshold limit of Rs. 1 Crore. The argument raised by the Corporate Debtor that the application is barred by Section 10A was not accepted. It was held that account was running overdue prior to 01.03.2020. Adjudicating Authority also has upheld the date of default as 31.03.2021 on which date NPA was declared. Aggrieved by the impugned order, this Appeal has been filed.
