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Gayatri Projects Limited v/s SREI Equipment Finance Limited

    Civil Revision Petition No. 1113 of 2022
    Decided On, 21 June 2022
    At, High Court of for the State of Telangana
    For the Petitioner: V. Seetharama Avadhani, Advocate. For the Respondent: Srikanth Hariharan, Advocate.

Judgment Text
Heard Mr.V.S.R.Avadhani, learned counsel for the revision petitioner and Mr.Srikanth Hariharan, learned counsel for the respondent.

2. Respondent, as the financial creditor, filed application before the National Company Law Tribunal, Hyderabad (Tribunal), under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating corporate insolvency resolution process against the petitioner for committing default in payment of dues. The said application has been registered as CP (IB) No.317/7/HDB/2021. It appears that notice was issued by the Tribunal to the petitioner whereafter petitioner was represented by learned counsel. From the order dated 16.03.2022, it is seen that earlier three months time was granted by the Tribunal to the petitioner (corporate debtor) to file counter. But no such counter was filed. Thereafter, on a number of occasions time was sought for by the petitioner for filing counter. Finally an order was passed by the Tribunal on 07.04.2022 to the effect that if counter was not filed within a week by the corporate debtor, chance to file counter would be forfeited. Matter was fixed on 22.04.2022. On 22.04.2022 again no counter was filed by the corporate debtor. Therefore, Tribunal ordered that chance to file counter by the corporate debtor stood forfeited. It is this order which is under impugnment in the present Civil Revision Petition.

3. Section 7 of the IBC deals with initiation of corporate insolvency resolution process by financial creditor. Sub-Section (4) thereof provides that within 14 days of receipt of the application by the financial creditor, the adjudicating authority shall ascertain the existence of the default and thereafter take a decision either admitting such application or rejecting such application. In the event of admission of the application, the corporate insolvency resolution process shall commence from the date of admission.

4. From the above, it is evident that the adjudicating authority, in this case the Tribunal, is required to take a decision within 14 days. The period of 14 days has long expired. On one pretext or the other, petitioners have not filed counter affidavit.

5. In such circumstances and having regard to the scheme and object of the IBC, I do not find any error or infirmity in the order dated 22.04.2022 to warrant interference, that too, u

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nder Article 227 of the Constitution of India. 6. Consequently, Civil Revision Petition is dismissed. However, there shall be no order as to costs. As a sequel, miscellaneous petitions, if any, pending in this revision petition shall also stand dismissed.