Small Industries Development Bank Of ... vs Sambandh Finserve Private Limited
- CitationCompany Appeal (AT) (Insolvency) No. 28 of 2023
Ratio decidendi
The rule this decision rests on
Where Part-IV of a Section 7 application states the date of default as falling within the period during which Section 10-A of the Insolvency and Bankruptcy Code was in operation, the application is barred by Section 10-A, and the Adjudicating Authority does not err in rejecting it on that basis, notwithstanding that the Statement of Account annexed to the application may contain details of defaults.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Small Industries Development Bank of India (SIDBI) ...Appellant
Versus
Sambandh Finserve pvt. Ltd. ...Respondent
Present: For Appellant: Mr. Sujoy Datta, Ms. Nishtha Khurana, Ms. Kinjal Goyal, Advocates For Respondent:
ORDER
12.01.2023: Heard Learned Counsel for the Appellant.
2. This Appeal has been filed against the Order dated 22nd November,
2022 by which order, Application under Section 7 of the Insolvency and
Bankruptcy Code, 2016 filed by the Appellant has been dismissed by the
Adjudicating Authority as barred by Section 10-A of the Code.
3. Learned Counsel for the Appellant submits that although in Part-IV, the
date of default mentioned is 15.12.2020 but in the Statement of Account,
details were given hence the Application was not barred.
4. We have heard the learned Counsel for the Appellant and perused the
record.
5. In part-IV of the Application in Column 2, following has been stated:
"Part-IV
PARTICULARS OF FINANCIAL DEBT 1 ..... ..........
-2- 2. AMOUNT CLAIMED TO Rs. 35,65,60,488.00 Ps as BE IN DEFAULT AND on 05.09.2022; DATE OF THE DATE ON WHICH DEFAULTS: The Corporate THE DEFAULT Debtor has committed OCCURRED (ATTACH default in payment of both THE WORKINGS FOR term loan accounts and also COMPUTATION OF defaulted in payment of AMOUNT AND DAYS instalments in Term Loan OF DEFULT IN Accounts and the default is TABULAR FORM) still subsisting. The date of default is 15.12.2020.
6. There being clear categorical statement in Part-IV that date of default
is 15.12.2020 which is a period during which Section 10-A had operation we
thus are of the view that no error has been committed by the Adjudicating
Authority rejecting Application filed under Section 10-A. However, ends of
justice will be served in giving liberty to the Appellant to file fresh Application
in accordance with law. We make it clear that we are not expressing any
opinion in merits of the Application. It is for the Adjudicating Authority to
consider the application if so filed and decide in accordance with law.
The Appeal is dismissed with the above liberty.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical)
Basant/nn
Company Appeal (AT) (Insolvency) No. 28/2023
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