Manmohan Gupta vs Mds Digital Media Pvt Ltd & Anr
- CitationCompany Appeal (AT) (Insolvency) No.202 of 2023
Ratio decidendi
The rule this decision rests on
The reasoning rests on two principles. First, where the Adjudicating Authority is satisfied that the operational debt admitted by the corporate debtor exceeds the statutory threshold, admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is not vitiated by an error, and the Authority need not determine at the admission stage the correct quantum of the debt. Second, the correct amount of the debt is a question reserved for subsequent determination at the stage of collation and verification of claims by the Resolution Professional, and it is not to be decided at the stage of admission.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Manmohan Gupta ...Appellant
Versus
MDS Digital Media Pvt. Ltd. & Anr. ...Respondents
Present: For Appellant: Present but appearance not marked. For Respondents: Mr. Shubham Paliwal, Mr. Parth Jain, Mr. Puru Jain and Ms. Nitya Prabhakar, Advocates.
ORDER
18.04.2023: I.A. No.735 of 2023: This is an application praying for
condonation of delay of 9 days in filing the appeal. The impugned order was
passed on 16.12.2022 and this Appeal has been filed by the Appellant on
24.01.2023. There being delay of less than 15 days, we are of the view that
discretion vested in this Tribunal be exercised for condonation of delay. Delay
is condoned. I.A. No. 735 of 2023 stands disposed of.
2. This Appeal has been filed against order dated 16.12.2022 by which
order the Adjudicating Authority has admitted Section 9 application filed by
the Operational Creditor. Learned counsel for the Appellant contends that
there was actually no debt amount. In the balance sheet of the Operational
Creditor also no debt was shown. He further submits that the amount which
was claimed by the Operational Creditor was also not the correct amount.
Cont'd.../ -2-
3. We have heard the learned counsel for the Appellant and perused the
record.
4. The Adjudicating Authority has admitted the Section 9 application on
the basis of admission made by the Corporate Debtor for an amount of
Rs.8,56,836/-, as has been observed in Para 5 of the order. Admittedly, when
the admitted amount is more than the threshold, the Adjudicating Authority
did not commit any error in admitting Section 9 application. The question as
to what is correct amount of debt was the question which was to be
subsequently looked into at the time of collation of the claims by the
Resolution Professional and at the stage of admission of section 9 application
it was not necessary for the Adjudicating Authority to express any opinion.
We, thus, are not inclined to enter into said question, at this stage. The
Appeal is dismissed accordingly.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No. 202 of 2023
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