Reliance Commercial Finance Limited Vs Darode Jog Builder Private Limited (NCLAT Delhi)
In the facts of the present case, the Adjudicating Authority has only given an opportunity to the Corporate Debtor to deposit the entire defaulted amount for which Section 7 Application was filed, within 45 days with liberty reserve to the Financial Creditor to revive the Section 7 Application in event the amount is not deposited.
In event, in consequence of the Order of the Adjudicating Authority, the Corporate Debtor deposits the entire defaulted amount whether still the Adjudicating Authority was required to necessarily admit the Section 7 Application. The answer would be obviously no. When the Corporate Debtor has complied to deposit the entire defaulted amount of the Financial Creditor as permitted by the Adjudicating Authority, no purpose and occasion shall survive to still proceed with the Insolvency Resolution of the Corporate Debtor. The proceeding under Section 7 are proceeding for resolution of the insolvency of the Corporate Debtor. We do not find any error in the course adopted by the Adjudicating Authority to ascertain as to whether the Corporate Debtor can comply to deposit the entire defaulted amount in the Bank Account of the Financial Creditor.
The interest of the Financial Creditor is fully protected since liberty has already been granted to the Financial Creditor to revive the Application under Section 7 of the IBC, 2016 in event, the amount is not deposited within 45 days. We thus do not find any good ground to interfere with the Order impugned in the present Appeal. In event, the Corporate Debtor does not deposit the amount, it is always open for the Financial Creditor to approach the Adjudicating Authority as per liberty granted by the Adjudicating Authority.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
1. This Appeal has been filed by the Financial Creditor against the Order dated 11th July, 2022 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court-III) in CP(IB) 498/MB/2020.
2. Brief facts of the case necessary to be noticed for deciding this Appeal are:
