The quantum of payment of debt does not fall for consideration before the Adjudicating Authority at the stage of admission of an Application under Section 7 of the IBC – Rajesh Kedia Ex-Director of Ajanta Paper and General Products Ltd. Vs. Phoenix ARC Pvt. Ltd. – NCLAT New Delhi

NCLAT finds that in so far as the contention of the Appellant qua the quantum of payment of debt is considered, we are of the earnest view that the same does not fall for consideration before the Adjudicating Authority at the stage of ‘admission’ of the Application under Section 7 of the Code. The only requirement is that the minimum outstanding debt should be more than the threshold amount provided for under the Code. The actual amount of ‘Claim’ is to be ascertained by the Resolution Professional after collating the ‘Claims’ and their verification which comes at a later stage. Keeping in view all the aforenoted reasons, this Tribunal is satisfied that there is an admission of ‘debt’ and ‘default’ as defined under the Code and we do not find any illegality or infirmity in the Impugned Order dated 07/10/2021, passed by the Learned Adjudicating Authority.

The quantum of payment of debt does not fall for consideration before the Adjudicating Authority at the stage of admission of an Application under Section 7 of the IBC – Rajesh Kedia Ex-Director of Ajanta Paper and General Products Ltd. Vs. Phoenix ARC Pvt. Ltd. – NCLAT New Delhi Read Post »