# In the matter of Kakkattu Philip Francis vs. IDBI Bank Ltd. & Anr.

> NCLAT judgment dated 2023-09-20. Citation: TCN-2023-NCLAT-00188. This is a Company Appeal (AT) (Insolvency) No. 698 of 2023 filed against the order dated…

- **Court:** NCLAT
- **Order date:** 20 Sept 2023
- **Citation:** TCN-2023-NCLAT-00188
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kakkattu-philip-francis-vs-idbi-bank-ltd-anr-9f9b4568

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 698 of 2023 filed against the order dated 28.04.2023 passed by the Adjudicating Authority (National Company Law Tribunal) Mumbai Bench-IV, which admitted Section 7 Application filed by ‘IDBI Bank Limited’. IDBI Bank Limited filed the application under Section 7 claiming a principal amount of Rs.3,75,62,720.70/- and interest of Rs.1,12,47,742/-. The Adjudicating Authority issued notices, and the Corporate Debtor appeared but did not file any reply. The Adjudicating Authority reserved the order on 27.03.2023 and admitted the application by the impugned order dated 28.04.2023.

## Facts

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against the Corporate Debtor, claiming a principal amount of Rs.3,75,62,720.70/- and interest of Rs.1,12,47,742/-. The Adjudicating Authority admitted the application, leading the Corporate Debtor to file an appeal. The Appellant claimed to have made payments towards the debt, including a deposit of Rs.4,95,00,000/- to IDBI Bank, which exceeded the principal amount and interest. The Appellant also argued that they were not fully heard by the Adjudicating Authority due to a technical glitch. The CoC had already been constituted. The South Indian Bank Ltd. filed an intervention application claiming Rs.27,52,69,165.96/- which was accepted by the IRP.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application filed by IDBI Bank …

**Ratio:** The Adjudicating Authority has the power to admit an application under Section 7 of the

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**Reasoning:** The court found no reason to interfere with the Adjudicating Authority's order, implying

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

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**Application:** The Adjudicating Authority correctly applied Section 7 of IBC as the debt and

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Kakkattu Philip…
- **Respondents:** IDBI Bank…

## Timeline

- **2023-03-27 — Order Res…**: Adjudicating Authority…
- **2023-04-28 — Impugned…**: Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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