Iifcl Asset Management Company Limited vs Feedback Energy Distribution ...
- CitationCompany Appeal (AT) (Insolvency) No. 1049 of 2023
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority is entitled to reject a Section 7 application as time-barred where the only default date pleaded in Part-IV of the application falls outside the limitation period, and the applicant cannot rely on other default dates that it asserts only in its submissions and not in the application itself. Where the default pleaded in the application falls within the Section 10A suspension period and no other default is pleaded in the application, the application may be rejected on that ground; however, the Appellate Tribunal may, in the interests of justice, grant the applicant liberty to file a fresh Section 7 application based on a default occurring after the Section 10A period.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IIFCL Asset Management Company Ltd. ...Appellant
Versus
Feedback Energy Distribution Company Ltd. ...Respondent
Present: For Appellant: Mr. Ankur Mittal, Ms. Sabhye Jain, Advocates For Respondent:
ORDER
11.08.2023: Heard Learned Counsel for the Appellant.
2. This Appeal has been filed against the Order dated 13.07.2023 by which
order the Adjudicating Authority has rejected Section 7 Application of I&B
Code, 2016 on the ground that the default claimed in the Application is during
the Section 10A period. In part-IV of the Application, in Item No. 2, following
statement was made by the Applicant:
2 AMOUNT CLAIMED 1. As on 15.04.2023 an amount of Rs.
TO BE IN DEFAULT 28,03,84,530/- (Rupees Twenty Eight Crores Three AND THE DATE ON Lakhs Eighty Five Thousand Fie Hundred and WHICH THE Thirty only) including interest, penal interest and DEFAULT charges is due from the borrower. OCCURRED (ATTACH THE 2. That Feedback Energy Distribution Company WORKINGS FOR Limited committed default in repayment of the dues COMPUTATION OF to the financial creditor.
AMOUNT AND DATES OF DEFAULT Date of Default: 05.09.2020 as per offer letter IN TRABULAR already annexed herewith as ANNEXURE A-14. FORM) As per the statement of account maintained with the financial creditor, following are the details of -2-
the amount due by the Corporate Debtor to the Financial Creditor as on 15.04.2023:
Name Account No. Amount due as of on 15.04.2023 Bank
IIFCL "0011102000078171" 280,384,530/- Mutual Fund IDF Series I
Principal amount accrued in the 200,000,000/- loan account till 15.04.2023.
Interest accrued in the loan 80,384,530/- account till 15.04.2023.
Other charges 0/-
Balance amount due as on Rs. 280,384,530/- (Twenty eight crore three lakh eighty four thousand five hundred thirty only/-)
Computation Table of amounts due is annexed herewith as Annexure A-27
Limitation
1. The date of default is 05.09.2020.
2. Thus, the present application is well within the period of limitation.
3. Learned Counsel for the Appellant contends that there were other two
dates apart from these dates which were mentioned in the Part-IV of the
Company Appeal (AT) (Insolvency) No.1049/2023 -3-
Application itself. He submits that he ought to have been permitted to rectify
the Application.
4. We have considered the submission of learned Counsel for the Appellant
and have perused the record.
5. In item no. 2 of Part-IV of the Application, only date of default mentioned
was 05.09.2020, the Adjudicating Authority did not commit any error in
rejecting Application as barred by time however in the facts of the present
case, we are of the view that ends of justice will be served in giving liberty to
Appellant to file a fresh Section 7 Application based on the default which is
subsequent to Section 10A period.
With these observations, we dispose of the Appeal.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical)
Basant/nn
Company Appeal (AT) (Insolvency) No.1049/2023
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