Omega Infotech Private Limited, a corporate debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The company

This case is similar to M/s Unigreen Global Private Limited Vs. Punjab National Bank and others , where a corporate debtor filed an application under section 10 of the Code for initiation of CIRP on the ground that it had failed to pay debt due to financial creditors and other creditors. Bank alleged suppression of facts on the ground that the corporate debtor had not disclosed full facts and had not furnished full particulars in relation to assets mortgaged or securities furnished to the financial creditors. Therefore, Adjudicating Authority rejected the application and imposed penalty on the corporate debtor. Corporate debtor filed an appeal with NCLAT against the order. NCLAT held that section 10 of the Code does not empower the Adjudicating Authority to go beyond the records as prescribed under section 10 and the information as required to be submitted by a corporate debtor in Form 6 of the NCLT Rules, 2016 subject to ineligibility, if any, as prescribed under section 11 of the Code. Section 11 of the Code prescribes conditions which make an applicant ineligible /disqualified to make an application under the code to initiate corporate insolvency resolution process. As per the judgment of NCLAT an applicant does not require to disclose or plead any fact which is unrelated or beyond the requirements of the Code or forms prescribed under the NCLT Rules, 2016 and thus non-disclosure of such facts cannot be termed as suppression of facts by a corporate debtor. As per Unigreen Global case, allegations of fraud or pending investigations cannot be grounds for rejection if statutory requirements are met. Hence, in the given case if the statutory requirements under the IBC are met and the application is complete, the adjudicating authority should admit the case.