IBC – Section 7(1) enables a financial creditor to initiate corporate insolvency resolution in respect of a financial debt owed not only to the applicant

ibc – Section 7(1) of the IBC enables a financial creditor to initiate corporate insolvency resolution process “when a default has accrued” – The Explanation under sub–Section (1) of Section 7 makes it clear that a default includes a default in respect of a financial debt owed not only to the applicant–-Financial Creditor but to any other financial creditor of the Corporate Debtor – The fact that the corporate debtor has been ordered by the High court to be wound up, is proof enough to show that the case falls under the category mentioned in the Explanation to section 7(1) – Facts, order of the Debt Recovery Tribunal in the Original Application filed by the appellant under Section 19 of the Act, 1993, is dated 01.11.2016 – Corporate Debtor executed Balance and Security Confirmation letters dated 03.07.2014 and 17.06.2017 and made a request for restructuring the loan – High Court passed an order dated 04.01.2018 directing the winding up of the Corporate Debtor – on 06.11.2019, NCLT admitted the petition filed under Section 7 IBC – Application filed by the appellant under Section 7 was clearly within three years from the date on which the “right to apply” in terms of Article 137 accrued.

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2022 PLRonline 1096