Oarsman Credit Private Limited. & Ors. vs Addarsh Management Pvt. Ltd.

Ld. Counsel on both sides present.

Ld. Counsel appearing for the Corporate Debtor submits that this proceeding against the Corporate Debtor u/s. 7 of the Insolvency and Bankruptcy

Code, 2016 cannot continue and is not maintainable, because the Corporate Debtor is an NBFC. It may be mentioned here that the matter was settled

earlier between the parties and on the failure of the Corporate Debtor to make payment, the matter was restored. Since the Corporate Debtor is an

NBFC, this proceeding cannot be continued. At this stage, the fact that the Corporate Debtor is an NBFC is not disputed by the Financial Creditor.

But in the reply to the main C.P., the Corporate Debtor had never stated that the Corporate Debtor is an NBFC in the first round of proceedings. In

this order of dismissal of proceedings some cost should be imposed on the Corporate Debtor for having failed to inform this Adjudicating Authority and

the Financial Creditor, who has made lot of expenses in the proceedings apart from wasting judicial time. Let a cost of Rs.50,000/- be paid by the

Corporate Debtor to the Financial Creditor.

In view of the fact that the Corporate Debtor is an NBFC, CP is dismissed as not maintainable.

File be consigned to the records.