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Judgment
O R D E R
25.07.2024 Heard Counsel for the Appellant as well as Counsel appearing for the Respondent.
This appeal has been filed against an order dated 15.12.2023, by which Order Adjudicating Authority has rejected Application under Section 7 filed by the Appellant on the ground that threshold under Section 7(1) of the Insolvency and Bankruptcy Code, 2016, (for short `The Code’) is not complete. Adjudicating Authority has noticed that Application was filed by only 83 Applicants which means that threshold was not complete.
Learned Counsel for the Appellant challenging the Order contends that the Annexure A-3 to the Application which was computation of the Financial Debt of the Corporate Debtor clearly mentioned the number of Applicant as 83 however, number of units were mentioned as 209 and the relevant criteria is the number of units as per the Judgment of the Hon’ble Supreme Court in the matter of `Manish Kumar’ Vs. `Union of India & Anr.’, reported in (2021) 5 SCC and this Tribunal in the matter of `Harinder Bashista’ Vs. `Sanjib Kumar & Ors.’ in Comp. App. (AT) (Ins.) No. 197 of 2023.
It is submitted that the Adjudicating Authority committed any error in holding that the Application does not comply with Section 7(1) proviso.
Mr. Gaurav Mitra appearing for the Respondent submits that since no Notice was issued to the Respondent, hence they could not file objection that Application does not fulfil the threshold. It is submitted that the figure of 209 of allottees is an incorrect figure and they are not meeting the threshold.
Be that as it may, Adjudicating Authority has only looked into the number of Applicants and rejected the Application, we are of the view that Order deserves to be set aside and the Application filed by the Appellant be revived before the Adjudicating Authority for fresh consideration. It shall be open for the Respondent to file their Reply/Objections under Section 7 Application including objections regarding maintainability.
With these observations, we dispose of the Appeal.
Both the Parties are at liberty to file a copy of this Order and pray for fixation of the date before the Adjudicating Authority for further consideration.