Section 7 - IBC

IBC - Not a legal proceeding dealing with the adjudication of the disputed claims

I&B Code, Section 7 - Proceedings under Insolvency and Bankruptcy Code, 2016 are only meant to resolve the insolvency issues and not adjudge a claim - Resolution plan provided that claim is based on outcome of adjudication of legal proceedings – Initiation of Corporate Insolvency Resolution Process would not tantamount to adjudication of the claim in regard to right to recover money which claimant in respect of a disputed claim, claims to be entitled to - Adjudication has to be, in respect of the claim, by a Civil Court and other adjudicatory mechanism like Arbitral Proceedings - Cannot be held to be a legal proceeding dealing with the adjudication of the disputed claims - Therefore, the Appellant cannot bank on this clause, while referring to filing application under Section 7 of the I&B Code - The remedy available to him did not lie in triggering Corporate Insolvency Resolution Process by taking resort to provisions of Section 7 of the I&B Code. #2020 SCeJ 2167 (NCLAT)