Mrs. Nandhitha Vedam v. M/s. Udhyaman Investments Pvt. Ltd. & Anr.

31.07.2018 The Appellant- Shareholder has challenged the order dated 12th March, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Single Bench, Chennai, admitting the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as I&B Code) filed by the Respondents for initiation of Corporate Insolvency Resolution Process of M/s. Tiffins Barytes Asbestos and Paints Limited- (Corporate Debtor).

2. Learned Senior Counsel appearing on behalf of the Appellant submitted that there was an existence of dispute between the Corporate Contd/-. Debtor and the Financial Creditor and the matter was referred for Arbitration. But no such ground can be taken for opposing an application under Section 7, though such ground can be taken if application would have been preferred under Section 9 of the I&B Code.

3. In the present case, as we find that there is a debt and the Corporate Debtor defaulted in payment of debt to the Financial Creditor. The application being complete, we hold that the Adjudicating Authority rightly admitted the application. We find no ground to interfere with the impugned order dated 12th March, 2018. The appeal is accordingly dismissed. No cost. (Justice S.J. Mukhopadhaya) Chairperson (Justice Bansi Lal Bhat) Member(Judicial) Ar/uk Company Appeal (AT) (Insolvency) No. 166 of 2018