IIFCL Asset Management Company Ltd vs Feedback Energy Distribution Company Ltd

Heard Learned Counsel for the Appellant.

This Appeal has been filed against the Order dated 13.07.2023 by which order the Adjudicating Authority has rejected Section 7 Application of I&B Code, 2016 on the ground that the default claimed in the Application is during the Section 10A period. In part-IV of the Application, in Item No. 2, following statement was made by the Applicant:

2

AMOUNT    CLAIMED TO  BE  IN  DEFAULT AND  THE  DATE  ON WHICH               THE DEFAULT OCCURRED (ATTACH            THE

WORKINGS        FOR COMPUTATION     OF AMOUNT            AND DATES OF DEFAULT IN            TRABULAR FORM)

As    on    15.04.2023    an    amount    of    Rs. 28,03,84,530/- (Rupees Twenty Eight Crores Three Lakhs  Eighty  Five  Thousand  Fie  Hundred  and Thirty only)  including  interest, penal  interest and charges is due from the borrower.

That  Feedback  Energy  Distribution  Company Limited committed default in repayment of the dues to the financial creditor.

Date  of  Default:  05.09.2020  as  per  offer  letter already annexed herewith as ANNEXURE A-14.

As per the statement of  account maintained  with the financial  creditor, following  are  the  details  of

the  amount  due  by  the  Corporate  Debtor  to  the Financial Creditor as on 15.04.2023:

Name of Bank

Account No.

Amount due as on 15.04.2023

IIFCL

Mutual Fund IDF

Series I

“0011102000078171”

280,384,530/-

Principal amount accrued in the loan account till 15.04.2023.

200,000,000/-

Interest   accrued   in   the   loan account till 15.04.2023.

80,384,530/-

Other charges

0/-

Balance amount due as on

Rs. 280,384,530/-

(Twenty    eight crore three lakh eighty        four thousand    five hundred  thirty only/-)

Computation  Table  of  amounts  due  is  annexed herewith as Annexure A-27

Limitation

The date of default is 05.09.2020.

Thus, the present application is well within the period of limitation.

Learned Counsel for the Appellant contends that there were other two dates apart from these dates which were mentioned in the Part-IV of the Application itself. He submits that he ought to have been permitted to rectify the Application.

We have considered the submission of learned Counsel for the Appellant and have perused the record.

In item no. 2 of Part-IV of the Application, only date of default mentioned was 05.09.2020, the Adjudicating Authority did not commit any error in rejecting Application as barred by time however in the facts of the present case, we are of the view that ends of justice will be served in giving liberty to Appellant to file a fresh Section 7 Application based on the default which is subsequent to Section 10A period.

With these observations, we dispose of the Appeal.