The date of default and acknowledgement are two different events and date of default is not dependent on acknowledgement of debt, NCLAT imposes a penalty of Rs. 25 lakh since filing IBC Section 9 application was an attempt to stop the implementation of RERA order – SLB Welfare Association Vs. M/s PSA IMPEX Pvt. Ltd. – NCLAT New Delhi
NCLAT imposed a penalty of Rs.25 lakh on M/s. Rudra Buildwell Constructions Pvt. Ltd. under Section 65 of IBC. NCLAT concluded that initiation of CIRP by the Operational Creditor was done fraudulently with the purpose other than insolvency resolution, the initiation of proceeding by Operational Creditor deserves to be set aside with imposition of penalty under Section 65.
When the date of default given by Operational Creditor in Section 9 Application is 31.03.2020, the mere fact that acknowledgement has been given by Corporate Debtor on 03.06.2021 accepting the debt, shall not change the date of default. We, thus, do not agree with the reasons given by the Adjudicating Authority that since acknowledgement is 03.06.2021, the date of default will become 03.06.2021. The date of default and acknowledgement are two different events and date of default is not dependent on acknowledgement of debt.
It also held that object of filing Section 9 Application by the Operational Creditor was not for resolution of insolvency of Corporate Debtor, but was an attempt to stop the implementation of RERA order and to take back the Project from the Appellant.