Section 7 application under IBC admissible as debt and default proved

Alok Gaur Vs State Bank of India & Anr (NCLAT Delhi)

NCLAT Delhi held that debt and default on the part of Corporate Debtor proved and hence application under section 7 of the Insolvency and Bankruptcy Code duly admissible. Thus, appeal dismissed and order of adjudicating authority upheld.

Facts- This Appeal by Suspended Director of the Corporate Debtor (“CD”) Jaypee Cement Corporation Limited has been filed challenging the order dated 22.07.2024 passed by National Company Law Tribunal, Allahabad Bench, Prayagraj admitting Section 7 Application filed by the State Bank of India (“SBI”). The Appellant aggrieved by the order admitting Section 7 Application and appointing Resolution Professional (“RP”) has come up in this Appeal.

Conclusion- Held that the Adjudicating Authority after considering all the relevant facts and circumstances, has come to the conclusion that debt and default on the part of the CD – JCCL is proved. When the debt and default is proved, the admission of Section 7 Application against JCCl, cannot be faulted. We, thus, do not find any error in the order of the Adjudicating Authority admitting Section 7 Application. There is no merit in the Appeal. The Appeal is dismissed.

FULL TEXT OF THE NCLAT JUDGMENT/ORDER

This Appeal by Suspended Director of the Corporate Debtor (“CD”) Jaypee Cement Corporation Limited has been filed challenging the order dated 22.07.2024 passed by National Company Law Tribunal, Allahabad Bench, Prayagraj admitting Section 7 Application filed by the State Bank of India (“SBI”). The Appellant aggrieved by the order admitting Section 7 Application and appointing Resolution Professional (“RP”) has come up in this Appeal.