In an application under Section 7, the Financial Creditor and the Corporate Debtor alone are the necessary party and no third party intervention is contemplated at that stage – Vekas Kumar Garg Vs. DMI Finance Pvt. Ltd. & Anr. – NCLAT New Delhi

In an application under Section 7, the Financial Creditor and the Corporate Debtor alone are the necessary party and the Adjudicating Authority is, at the pre-admission stage, only required to satisfy itself that there is a financial debt in respect whereof the Corporate Debtor has committed a default warranting triggering of CIRP. The Adjudicating Authority is required to satisfy itself in regard to there being a financial debt and default thereof on the part of the Corporate Debtor besides the application being complete as mandated under Section 7(5) of the ‘I&B Code’ and then pass an order of admission or rejection on merit as mandated under sub-section (4) of Section 7 within 14 days. No third party intervention is contemplated at that stage. No lengthy hearing is warranted at the pre-admission stage nor can the dispute in regard to shareholding or inter se directorial issue be entertained.

In an application under Section 7, the Financial Creditor and the Corporate Debtor alone are the necessary party and no third party intervention is contemplated at that stage – Vekas Kumar Garg Vs. DMI Finance Pvt. Ltd. & Anr. – NCLAT New Delhi Read Post »