There are very peculiar issues still subsisting in the IBC, as it is fairly new Code having prolonged teething problems, of which one of the major issues that is usually encountered while filing an application under Section 9 of the IBC, is determining the date of default. The present article ponders upon the determination of the suitable date of default under Section 9 Application of the Code, for the commencement of an insolvency proceeding. This article also analyses which invoice date should be taken into consideration in case of multiple invoices? It is necessary to determine which invoice date, amongst all, shall be used as the date of default.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’) provides for methods that can be undertaken by a secured creditor to recover its dues in case of a default. The main provision under the SARFAESI Act is Section 13 relating to ‘Enforcement of Security Interest’ describing the manner, timelines and procedures within which the secured creditors can enforce their rights to recover their dues against a NPA.