GAYATRI PROJECTS LIMITED Vs. SREI EQUIPMENT FINANCE LIMITED

JUDGEMENT

(1.) Heard Mr.V.S.R.Avadhani, learned counsel for the revision petitioner and Mr.Srikanth Hariharan, learned counsel for the respondent.

(2.) Respondent, as the financial creditor, filed application before the National Company Law Tribunal, Hyderabad (Tribunal), under Sec. 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating corporate insolvency resolution process against the petitioner for committing default in payment of dues. The said application has been registered as CP (IB) No.317/7/HDB/2021. It appears that notice was issued by the Tribunal to the petitioner whereafter petitioner was represented by learned counsel. From the order dtd. 16/3/2022, it is seen that earlier three months time was granted by the Tribunal to the petitioner (corporate debtor) to file counter. But no such counter was filed. Thereafter, on a number of occasions time was sought for by the petitioner for filing counter. Finally an order was passed by the Tribunal on 7/4/2022 to the effect that if counter was not filed within a week by the corporate debtor, chance to file counter would be forfeited. Matter was fixed on 22/4/2022. On 22/4/2022 again no counter was filed by the corporate debtor. Therefore, Tribunal ordered that chance to file counter by the corporate debtor stood forfeited. It is this order which is under impugnment in the present Civil Revision Petition.

(3.) Sec. 7 of the IBC deals with initiation of corporate insolvency resolution process by financial creditor. Sub-Sec. (4) thereof provides that within 14 days of receipt of the application by the financial creditor, the adjudicating authority shall ascertain the existence of the default and thereafter take a decision either admitting such application or rejecting such application. In the event of admission of the application, the corporate insolvency resolution process shall commence from the date of admission.