# 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-00175. 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-00175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/abhishek-singh-suspended-directors-of-manpasand-beverages-ltd-vs-yoginkumar-asho-8cda12a9

## 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 against the Corporate Debtor, which was 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 this order, arguing that there was no financial debt. An amount of Rs.2,65,00,000/- was transferred via RTGS, which the Appellant does not deny, but disputes its nature as 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 Appellant offered to deposit Rs.2,65,00,000/- to show bonafide. The Corporate Debtor did not appear despite notices being served.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in …

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

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**Reasoning:** The Adjudicating Authority admitted the Section 7 application based on the evidence

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate corporate

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**Application:** The court is reviewing whether the evidence presented was sufficient to

…

## 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 passed an order admitting the Section 7 application filed by…

## 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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