If an incomplete or improper authorisation is found in CIRP application, Adjudicating Authority, in compliance of proviso to Section 7 of IBC, 2016 is required to issue notice and provide an opportunity to rectify the defects – Rupesh Anand Vs. Anup Tripathi – NCLAT Chennai
NCLAT held that from the reading of the ingredients of Section 7 of the Code, if an application, filed under Section 7 of the I & B Code, 2016, is found to be incomplete, then the Adjudicating Authority, in compliance of proviso to Section 7 of the I & B Code, 2016 is required to issue notice and provide an opportunity to rectify the defects, within seven days, failing which, the petition, can be rejected. An incomplete or improper authorisation may vitiates the entire proceedings rendering legal action, devoid of authority. It is therefore, felt that the rectification of defects, if any, is of utmost importance and cannot be ignored. The requirement of Section 7 of the Code is that the application should be complete in all respects and in case of defects, the Adjudicating Authority (Tribunal) should provide an opportunity, to the Applicant, for rectifying these defects, before accepting/ rejecting of the application.
