In the matter of Laxmi Engineering Industries (Bhopal) Pvt. Ltd.
- CitationIA-170(MP)2023 in CP (IB)08(MP)2022
Ratio decidendi
The rule this decision rests on
The Rule 4(3) requirement under the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, that a copy of a Section 7 application be furnished to the Board is a technical requirement, and its subsequent compliance during the pendency of the proceedings cures any defect, so that the application cannot be treated as defective on that ground.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
BEFORE THE ADJUDICATING AUTHORITY NATIONAL COMPANY LAW TRIBUNAL BENCH AT INDORE IA/170(MP)2023 in CP (IB)08(MP)2022 IA/170(MP)2023 [An application filed in the matter of Section 7 petition] Laxmi Engineering Industries (Bhopal) Pvt. Ltd. 72-A, Sector-1, Govindpura, Industrial Area, Bhopal-Madhya Pradesh-462023. ……. Applicant Vs. Canara Bank B-3 & B-4, Tilak Nagar, Bawadiya Kalan, Bhopal, Madhya Pradesh-462026. ……. Respondent In the matter of: CP (IB)08(MP)2022 [An application under Section 7 of the Insolvency and Bankruptcy Code, 2016] Canara Bank B-3 & B-4, Tilak Nagar, Bawadiya Kalan, Bhopal, Madhya Pradesh-462026. ……Applicant/Financial Creditor
Vs. Laxmi Engineering Industries (Bhopal) Pvt. Ltd. 72-A, Sector-1, Govindpura, Industrial Area, Bhopal-Madhya Pradesh-462023. ……Respondent/Corporate Debtor
Coram: Mahendra Khandelwal, Hon’ble Member (J) Kaushalendra Kumar Singh, Hon’ble Member (T) Appearance: For Applicant : Ld. Adv. Mr. Rushil Shukla For Respondent : Ld. Adv. Mr. Abhishek Devgan
Order Reserved On 16.06.2023 Order Pronounced On 28.07.2023
ORDER 1. The present Interlocutory Application has been filed in the context of proceedings under Section 7 of the Insolvency and Bankruptcy Code against the Corporate Debtor in CP (IB)08(MP) 2022 for initiation of Corporate Insolvency Resolution Process. Through this IA the applicant/Corporate Debtor has taken a plea that Financial Creditor has not complied with the mandatory Rule 4(3) of the Insolvency and Bankruptcy (Application before Adjudicating Authority) under Rules 2016 and thereby the application being effective and deserves to be dismissed. We, however, find that in pursuance of the clarification sought on this issue, the Financial Creditor had submitted a copy of the application to the IBBI during the proceedings on 06.01.2023. This being in the matter of a technical requirement, we are of the view that compliance made even during the course of proceedings would suffice and on that account the application cannot be treated as defective. In view thereof we find that the plea taken by the Corporate Debtor through this IA is devoid of any merit and accordingly, the application stands dismissed/rejected.
Sd/- Sd/- KAUSHALENDRA KUMAR SINGH MAHENDRA KHANDELWAL MEMBER (TECHNICAL) MEMBER (JUDICIAL) Narendra S. Tomar/Steno
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