# In the matter of Ajay Singal vs. Piyush Garg & Ors. Company Appeal (AT) (Insolvency) No.406 of 2023

> NCLAT judgment dated 2023-04-12. Citation: TCN-2023-NCLAT-00627. The appeal was filed against the order dated 16.02.2023, by which the application under…

- **Court:** NCLAT
- **Order date:** 12 Apr 2023
- **Citation:** TCN-2023-NCLAT-00627
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ajay-singal-vs-piyush-garg-ors-company-appeal-db527381

## Summary

### Background

The appeal was filed against the order dated 16.02.2023, by which the application under Section 7 of the Insolvency and Bankruptcy Code (IBC) was admitted. The Adjudicating Authority held that default had been admitted by the Corporate Debtor, and the Corporate Insolvency Resolution Process (CIRP) was initiated with respect to the 'Rosewood Project'.

## Facts

An appeal was filed against the order dated 16.02.2023, where the Adjudicating Authority admitted an application under Section 7 of the IBC. The Adjudicating Authority determined that the Corporate Debtor had admitted to the default, leading to the initiation of the CIRP specifically for the 'Rosewood Project'. The appellant contested this order, but the court found no error in the Adjudicating Authority's decision. The key fact is the admission of default by the Corporate Debtor, which formed the basis for the Adjudicating Authority's decision to admit the Section 7 application and initiate CIRP.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application under Section 7 of the …

**Ratio:** The court's ratio is that if no error is found in the order admitting the Section 7

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**Reasoning:** The court reasoned that it found no error in the order passed by the Adjudicating

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**Interpretation:** Section 7 of the IBC allows financial creditors to initiate CIRP against a

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**Application:** In this case, the court applied the ratio by examining the Adjudicating

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Ajay Si…
- **Respondents:** Piyush Garg…

## Timeline

- **2023-02-16 — Order Da…**: The Adjudicating Authority passed an order admitting the application under Section 7 of…
- **2023-04-12 — Appeal He…**: The court heard the learned counsel for the Appellant regarding the appeal against 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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