Puneet P. Bhatia Vs ASREC (India) Ltd. (NCLAT Delhi)
NCLAT Delhi held that protection available under section 10A of the IBC not available since the date of default predates the moratorium period. Further, appellant failed to provide evidence that directly links the default to the impact of pandemic.
Facts- This appeal arises from an order dated 09.01.2024 by the National Company Law Tribunal (NCLT), Mumbai Bench-I. The Appellant, Mr. Puneet P. Bhatia, a suspended director of Barracks Retail India Pvt. Ltd., the Corporate Debtor, has challenged the Adjudicating Authority’s decision to admit an application for Corporate Insolvency Resolution Process (CIRP) initiated by ASREC (India) Limited, Respondent No. 1/ Financial Creditor u/s. 7 of the Insolvency and Bankruptcy Code, 2016.
The CIRP application was filed before the Adjudicating Authority on the ground that the CD has defaulted to repay the Financial Creditor an amount of Rs. 21,37,94,606/- as on 30.09.2022.
Conclusion- An application to the Adjudicating Authority (NCLT) under Section 7 of the IBC in the prescribed form, cannot be compared with the plaint in a suit. Such application cannot be judged by the same standards, as a plaint in a suit, or any other pleadings in a Court of law. It further clarifies that under the provisions of Section 7 of the Code, NCLT can allow amendments to pleadings under the CIPR proceedings before the final order is passed.
