NCLAT rejected the submission that Sec. 3(10) definition of Creditor includes financial creditor, operational creditor, decree-holder etc. But Sec. 5 dealing with Financial Creditor & operational creditor do not include decree-holder to initiate CIRP in Part II – Digamber Bhondwe Vs. JM Financial Asset Reconstruction Company Ltd. – NCLAT
NCLAT rejected the submission that because in Section 3(10) of Code in definition of “Creditor” the “decree holder” is included it shows that decree gives cause to initiate application under Section 7 of Code. Section 3 is in Part I of Code. Part II of Code deals with “Insolvency Resolution And Liquidation For Corporate Person”, & has its own set of definitions in Section 5. Section 3 (10) definition of “Creditor” includes “financial creditor”, “operational creditor” “decree-holder” etc. But Section 7 or Section 9 dealing with “Financial Creditor” and “operational creditor” do not include “decree-holder” to initiate CIRP in Part II. NCLAT accepted the submissions made by the Learned Counsel for the Appellant and hold that the Application under Section 7 in this matter was time barred and impugned order admitting the Application deserves to be set aside. A. For the above reasons, we set aside the impugned order passed by Adjudicating Authority and dismiss the Application under Section 7 of Code filed by the Respondent.