Consti is imp

1. Whether the application filed under Section 7 of Insolvency and Bankruptcy Code,
2016, maintainable?

It is humbly submitted before the hon’ble court that the application filed under Section 7 of the
IBC,2016, by the financial creditor i.e. The State Bank of Malta , Shawn and Mac Enterprises is
not maintainable as it states that “A financial creditor either by itself or jointly with other
financial creditors may file an application for initiating corporate insolvency resolution process
against a corporate debtor before the Adjudicating Authority when a default has occurred”, but in
the present matter, there exists a dispute against the amount claimed by the financial creditor .
Also, they have misinterpreted the facts before the Hon’ble Tribunal as the default amount
calculated by the financial creditor is incorrect and contrary to the provision of CLA.

1.1. The financial creditors have increased the debt amount.

It is submitted that the Ted Airway has took a loan amounting to Rs.3000 crore from
the said financial creditors in 2005.However, the financial creditors has falsely
claimed an unreasonable and excessive amount of Rs.1400 crore without giving any
reasonable ground for such hike in the debt amount.’1

Also, it does not provide any calculative material which shows the reason behind the
hike in debt amount. Thus, the application is false in material facts, so the financial
creditor is liable for furnishing false information.2
The debt amount needed to be examined and hence the insolvency application under
Sec 7 of IBC, 2016 is not maintainable.

1
New finds (India) v. Vorion Chemicals &Distillers (1970) 46 Comp cas 87(Mad.)
2
Section 75 of IBC, 2016