# In the matter of Nitin Chandrakant Desai vs. Edelweiss Asset Reconstruction Ltd. & Anr.

> NCLAT judgment dated 2023-08-01. Citation: TCN-2023-NCLAT-00323. This is an appeal against an order dated July 25, 2023, by which the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 1 Aug 2023
- **Citation:** TCN-2023-NCLAT-00323
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nitin-chandrakant-desai-vs-edelweiss-asset-reconstruction-ltd-anr-056e6d68

## Summary

### Background

This is an appeal against an order dated July 25, 2023, by which the Adjudicating Authority admitted a Section 7 application filed by the Respondent. The Appellant contends that the application was barred by Section 10A, a submission that was allegedly wrongly rejected. The Adjudicating Authority considered the Appellant's submission, as detailed in paragraph 8 of the order. The Financial Creditor successfully proved the existence of debt and default through the record of default issued by the NESL, along with other security documents and loan documents. The date of default was mentioned as January 31, 2020, in the NESL Certificate, and the Company Petition was filed on July 26, 2022, which is within the limitation period. The Adjudicating Authority found that the

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## Facts

The Appellant, Nitin Chandrakant Desai, filed an appeal against an order by the Adjudicating Authority that admitted a Section 7 application filed by the Respondent, Edelweiss Asset Reconstruction Ltd. The core issue revolves around the date of default and its relation to Section 10A of the Insolvency and Bankruptcy Code (IBC). The Financial Creditor, Edelweiss, successfully proved the existence of debt and default through the record of default issued by the NESL, with the default date mentioned as January 31, 2020. The Company Petition was filed on July 26, 2022. The Appellant argued that the application was barred by Section 10A, which submission was rejected. The Adjudicating Authority found that the default occurred prior to the Section 10A period. Restructuring

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## Issues and analysis

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

**Ratio:** The Adjudicating Authority has the power to admit a Section 7 application if the

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**Reasoning:** The court found that the Financial Creditor successfully proved the existence of debt and

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

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**Application:** In this case, the Financial Creditor provided sufficient evidence of debt and

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Nitin Chandrakant…
- **Respondents:** Edelweiss Asset…
- **Advocates:** Anju…; Hitesh S…; +2 more

## Timeline

- **2020-01-31 — Date of D…**: The date of default is recorded as…
- **2020-08-17 — Restructuring…**: Restructuring was…

## 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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