# In the matter of Naresh Kumar Sharma Vs. Oriental Bank of Commerce & Anr. CA(AT)(Insolvency) 628-2018

> NCLAT judgment dated 2019-09-18. Citation: TCN-2019-NCLAT-00270. The case involves an appeal against an order dated 11th September 2018, passed by the…

- **Court:** NCLAT
- **Order date:** 18 Sept 2019
- **Citation:** TCN-2019-NCLAT-00270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/naresh-kumar-sharma-vs-oriental-bank-of-commerce-anr-ca-082bd673

## Summary

### Background

The case involves an appeal against an order dated 11th September 2018, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Bench III, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by Oriental Bank of Commerce against M/s. Shekhar Resorts Ltd. The appeal was preferred by the Director/Shareholder of the Corporate Debtor.

## Facts

Oriental Bank of Commerce filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Shekhar Resorts Ltd., the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process. The Adjudicating Authority (National Company Law Tribunal), New Delhi, admitted the application. The Director/Shareholder of the Corporate Debtor filed an appeal against the order. The Appellant argued that the Corporate Debtor was not a wilful defaulter, which was allegedly accepted by the Respondent-Bank in its notice dated 19th June, 2016. The Respondent-Bank claimed a total default of Rs.19,67,64,134/-, including interest, out of which the Appellant had paid Rs.15.88 Crores approximately till March, 2018. The Appellant also raised the issue of

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## Issues and analysis

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

**Ratio:** The application under Section 7 is maintainable if it is submitted by a person authorized

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**Reasoning:** The court found that the application under Section 7 in Form-1 was submitted by the

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

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**Application:** In this case, the application was filed by the Cluster Monitoring Head, who was

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Sh. Naresh Kumar…
- **Respondents:** M/s. Shekhar…; Oriental Bank of…
- **Advocates:** Rakesh…; Aashish K…; +7 more

## Timeline

- **2018-09-11 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi, passed an order…
- **2016-06-19 — Respondent's…**: Oriental Bank of Commerce issued a notice stating that the Corporate Debtor was not a…

## 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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