Royal Construction Vs Gannon Dunkerley & Company Limited (NCLAT Delhi)
NCLAT Delhi held that no default falling within the prohibited period of Section 10A of the Insolvency and Bankruptcy Code can form basis for initiating CIRP. Accordingly, section 9 application rightly rejected.
Facts- The present appeal filed under Section 61 of Insolvency and Bankruptcy Code 2016 by the Appellant arises out of the Order dated 13.01.2025 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench). By the impugned order, the Adjudicating Authority has dismissed the Section 9 application filed by the Operational Creditor. Aggrieved by the impugned order, the present appeal has been preferred by the Appellant-Operational creditor.
Conclusion- Held that the dates of default of the claims, basis which the Section 9 application has been filed, the dates indisputably fall during the prohibited period of Section 10A of the IBC. The dates of default in the present facts of the case fell between 03.05.2020 and 01.01.2021 which dates were hit by Section 10A of the IBC. In terms of the statutory provision of Section 10A and as held by the Hon’ble Supreme Court in Ramesh Kymal judgment supra, no default falling within this period can form the basis for initiating CIRP since the default which occur during the Section 10A period cannot be included in the calculation of debt and default for initiating CIRP.
