Edelweiss Asset Reconstructions ... vs S Kumars Ltd

Edelweiss Asset Reconstructions Company Ltd. ....Appellant (acting in its capacity as trustee of EARC SC Trust 35) Vs. M/s. S. Kumars Ltd. ....Respondent Present: Appellant: Mr. RP Agrawal, Ms. Manisha Agrawal, Ms. Pragati Agrawal, Advocates. Respondent:

ORDER

(Through Virtual Mode)

28.01.2021: Application under Section 7 of the Insolvency and

Bankruptcy Code, 2016 ("I&B Code" for short) filed by the Appellant is stated to

be pending consideration for admission before the Adjudicating Authority

(National Company Law Tribunal), Mumbai Bench, Court No.-II.

Mr. R.P. Agrawal, Advocate representing the Appellant- (Financial

Creditor) has invited our attention to the impugned order dated 2nd March,

2020 by virtue whereof parties were directed to complete the pleadings if the

endeavors for settlement do not fructify. The matter was posted for 15th April,

2021. According to Mr. R.P. Agrawal, learned counsel for the Appellant, the

matter has not been taken up thereafter.

Contd/-......

-2-

The statutory provision engrafted in Section 7(4) of the 'I&B Code' clearly

provides the time frame of 14 days for the Adjudicating Authority to decide the

application of Financial Creditor by either admitting or rejecting it. While one

may not find fault with the approach of the Adjudicating Authority in providing

an opportunity to the parties to work out a settlement, it needs to be

emphasized that the statutory provision has to be kept in view and the

Adjudicating Authority has to adhere to the statutory provisions. After

ascertaining debt and default and being satisfied of the completeness of the

application it is to pass an order of admission or rejection of application on

merit.

In the given circumstances, we would, therefore, dispose off this appeal

with a request to the Adjudicating Authority to list the matter in the coming

week and in the event of parties not reporting settlement, pass order of

admission or otherwise on merit after ascertaining debt and default and

completeness of the application.

Copy of this order be communicated to the Adjudicating Authority

forthwith.

[Justice Bansi Lal Bhat] Acting Chairperson

[Dr. Ashok Kumar Mishra] Member (Technical)

[Dr. Alok Srivastava] Member (Technical) AR/g Company Appeal (AT) (Insolvency) No. 52 of 2021