Mere insertion of any date in Section 7 application does not make that date of default valid and binding especially when there is no agreement between the two parties as to what shall constitute an event of default | If the default is committed prior to the Section 10A of IBC period and continues in the Section 10A period, this does not put any bar on the initiation of CIRP proceedings – Sushma Paranjpe v. Rohan Developers Pvt. Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that: (i) Mere insertion of any date in Form 1 at Part IV of the Section 7 application does not make that date of default valid and binding especially when there is no agreement between the two parties as to what shall constitute an event of default. (ii) A plain reading of Section 10A signifies that no application/ proceedings under Sections 7, 9 and 10 can be initiated for any default in payment which is committed during Section 10A period. The object and purpose of Section 10A has been explained in the ordinance by which Section 10A was brought into operation. What is essentially barred is initiation of CIRP proceedings when the Corporate Debtor commits any default during the Section 10A period. However, if the default is committed prior to the Section 10A period and continues in the Section 10A period, this statutory provision does not put any bar on the initiation of CIRP proceedings.

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