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M/S Hinduja Leyland Finance Limited vs M/S Fly Express Logistic Private ...

National Company Law Appellate Tribunal20 May 2022Ashok Bhushan

Ratio decidendi

The rule this decision rests on

The Adjudicating Authority is entitled to reject a Section 7 application under the Insolvency and Bankruptcy Code, 2016 where the date of default stated in the application, as it appears on the face of the application, is itself the operative ground for rejection and the applicant has not sought or been permitted to correct it; a petition whose stated date of default is apparent on its face and falls outside the period permitted by Section 10A is not vitiated by any error in the Adjudicating Authority's refusal to entertain it, and dismissal of the appeal against such refusal is without prejudice to the applicant's right to file a fresh application under Section 7 on proper materials.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNALPRINCIPAL BENCH, NEW DELHICompany Appeal (AT) (Ins.) No. 553 of 2022IN THE MATTER OF:

Hinduja Leyland Finance Ltd. ...Appellant

Versus

Fly Express Logistic Pvt. Ltd. ...Respondent

Present: For Appellant: Mr. Gulshan Kr. Sachdev, Advocate

For Respondent:

ORDER

(Virtual Mode)

20.05.2022: Heard Learned Counsel for the Appellant.

2. This Appeal has been filed against the Order dated 05th April, 2022

passed by the Adjudicating Authority (National Company Law Tribunal,

Allahabad Bench, Prayagraj) by which, the Adjudicating Authority has

rejected the Section 7 Application filed by the Appellant on the ground that

same is barred by Section 10A of the Insolvency and Bankruptcy Code, 2016.

3. Learned Counsel for the Appellant submits that in the Section 7

Application 'date of default' 24.12.2022 was wrongly mentioned and he

wanted to file an amendment Application but since the Company Petition was

dismissed on first day of hearing, he could not do so.

4. We have perused the Section 7 Application 'date of default' is clearly

mentioned in Part-IV as 24.12.2022 hence the Adjudicating Authority is not

in error in rejecting the Application, thus we do not find any ground to 2

entertain the Appeal however the Appellant is at liberty to initiate fresh

proceeding under Section 7 on appropriate materials in accordance with law.

The Appeal is dismissed accordingly.

[Justice Ashok Bhushan] Chairperson

[Ms. Shreesha Merla] Member (Technical)

[Mr. Naresh Salecha] Member (Technical)

Basant/nn

Company Appeal (AT) Ins. No. 553 of 2022

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