# In the matter of Abhishek Singh, Suspended Directors Of Manpasand Beverages Ltd. Vs Yoginkumar Ashokbhai Patel & Anr.

> NCLAT judgment dated 2024-09-26. Citation: TCN-2024-NCLAT-00176. The case involves an appeal against an order dated 2024-09-24 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 26 Sept 2024
- **Citation:** TCN-2024-NCLAT-00176
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/abhishek-singh-suspended-directors-of-manpasand-beverages-ltd-vs-yoginkumar-asho-540d45bc

## Summary

### Background

The case involves an appeal against an order dated 2024-09-24 passed by the Adjudicating Authority (National Company Law Tribunal) Ahmedabad Division Bench, Court-1. The Adjudicating Authority admitted a Section 7 application filed by the Respondent. An earlier application was disposed of due to the commencement of insolvency proceedings against the Corporate Debtor, which were later restored by the Adjudicating Authority. Notices were issued, but no one appeared for the Corporate Debtor, leading the Adjudicating Authority to proceed ex parte and admit the Section 7 application.

## Facts

The Adjudicating Authority (National Company Law Tribunal) Ahmedabad admitted a Section 7 application filed by the Respondent against the Corporate Debtor. An earlier insolvency proceeding against the Corporate Debtor was restored by the Adjudicating Authority. The Appellant challenges the order, arguing that there was no financial debt claimed in the Section 7 application. A sum of Rs.2,65,00,000/- was transferred via RTGS, but the Appellant and Corporate Debtor deny that it constitutes a financial debt. The Adjudicating Authority relied on SEBI summons to conclude the amount was accepted as a loan. The Appellant also raised the issue of limitation. The Respondent argues that the RTGS transfer was correctly accepted and that the SEBI summons confirms the transfer by

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct …

**Ratio:** The Adjudicating Authority can admit a Section 7 application if a financial debt exists

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**Reasoning:** The Adjudicating Authority proceeded ex parte after notices were served and no one

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code allows a financial creditor to

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**Application:** The court will need to determine whether the Adjudicating Authority correctly

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Abhishek…
- **Respondents:** Manpasand…; Yoginkumar…

## Timeline

- **2024-07-03 — Restoration of…**: The Adjudicating Authority restored the insolvency proceedings against the Corporate…
- **2024-09-24 — Order by Adjudicating…**: The Adjudicating Authority admitted the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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