# In the matter of Bharti Defence and Infrastructure Ltd. Vs. Edelweiss Asset Reconstruction Company Ltd. CA (AT) No. 71-2017

> NCLAT judgment dated 2017-10-17. Citation: TCN-2017-NCLAT-00094. The case involves an appeal against the order dated 6th June, 2017, passed by the…

- **Court:** NCLAT
- **Order date:** 17 Oct 2017
- **Citation:** TCN-2017-NCLAT-00094
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bharti-defence-and-infrastructure-ltd-vs-edelweiss-asset-reconstruction-company-09d478a8

## Summary

### Background

The case involves an appeal against the order dated 6th June, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, which admitted an application filed by Edelweiss Asset Reconstruction Company Limited ('Financial Creditor') under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code') for initiation of 'Corporate Insolvency Resolution Process' against Bharti Defence and Infrastructure Limited ('Corporate Debtor'). The Adjudicating Authority declared a moratorium and appointed an Interim Resolution Professional.

## Facts

Edelweiss Asset Reconstruction Company Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Bharti Defence and Infrastructure Limited, the Corporate Debtor. The Adjudicating Authority admitted the application, declared a moratorium, and appointed an Interim Resolution Professional. The Corporate Debtor appealed, arguing that the Financial Creditor failed to provide adequate evidence of default as required by Section 7(3)(a) of the I&B Code. The Corporate Debtor also contended that the Insolvency and Bankruptcy Board of India (IBBI) had not framed regulations specifying the 'other record' or 'evidence of default' as contemplated under Clause

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was …

**Ratio:** The rules framed by the Central Government under Section 239 having prescribed the

…

**Reasoning:** The Appellate Tribunal reasoned that the rules of procedure should not frustrate or

…

**Interpretation:** This interpretation clarifies that while regulations by the Board are

…

**Application:** In this case, the Appellant-'Corporate Debtor' has enclosed the application

…

## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Respondents:** Bharti Defence…; Edelweiss Asset…

## Timeline

- **2017-06-06 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, passed an order…
- **2017-08-11 — Appellate Tribunal…**: The Appellate Tribunal issued a judgment in Company Appeal (AT) (Insolvency) No. 44 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 239 — Power to make rules](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-239)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/bharti-defence-and-infrastructure-ltd-vs-edelweiss-asset-reconstruction-company-09d478a8