ORDER

The appellant who claimed to be ‘Financial Creditor’ filed an application under section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “I & B Code”) for initiation of ‘Corporate Insolvency Resolution Process’ against the Respondents - Brys International Pvt. Ltd. & Ors. (‘Corporate Debtor’). Ld. Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, by impugned order dated 22nd June, 2017 dismissed the application under section 7 of the ‘I & B Code’ preferred by appellant with the following observations:—

“On reading of the above 2 sub-sections, it is apparent that while there is a provision for the Adjudicating Authority to make a reference to the Board for a recommendation of an Insolvency professional, in the case of an operational creditor, there is no such provision in the case of a financial creditor. The instant application has been filed under section 7 of IBC as a financial creditor. The applicant financial creditor has not proposed the name of any insolvency professional and thus, has not fulfilled the requirement as in sub-section 3(b) of section 7 of the Code, which reads as follows:—

‘The financial creditor shall, along with the application furnish—

(a) Record of the default recorded with the information utility or such other record or evidence of default as may be specified;

(b) the name of the resolution professional proposed to act as an interim resolution professional; and

(c) any other information as may be specified by the Board.”

Hence, we are unable to admit the application for insolvency as the same is not complete.

Application is dismissed.”

2. Ld. Counsel for the appellant submits that the appellant had proposed the name of the ‘Interim Resolution Professional’ and referred to Part-III of the application filed under section 7 in format to suggest that name of one “Mr. Vivek Raheja, R/o CU-49, Pitampura, Delhi 110088 with e-mail address vivek@vpgs.in and Registration No. IBBI/IPA-01/IP-00006/2016-2017” along with consent letter of the ‘Interim Resolution Professional’ in Annexure A-4 attached thereto. It is also submitted that non-furnishing the name of proposed ‘Interim Resolution Professional’ will not render the application incomplete.

3. The questions arise for consideration in this appeal are:

(i) Whether it is mandatory for a ‘Financial Creditor’ to propose the name of ‘Interim Resolution Professional’ in an application under section 7 of the ‘I&B Code’?

(ii) Whether in absence of proposal of name of ‘Interim Resolution Professional’ the application is incomplete?

(iii) Whether the impugned order dated 22nd June, 2017 is legal and valid?

4. Before deciding the first two questions, it is desirable to notice the relevant facts as pleaded by the parties.

5. Appellant has pleaded and not disputed by respondents that the appellant preferred an application under section 7 in Form-1 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. In the said Form-1, the appellant has proposed the name of ‘Interim Resolution Professional’, as apparent from the record and noticed in the preceding paragraph. In view of such admitted facts, the impugned order dated 22nd June, 2017 cannot be sustained and the matter is required to be remitted back to the Ld. Adjudicating Authority for admission of the case, if the application is otherwise complete.

6. To determine the question as to whether it is mandatory for the ‘Financial Creditor’ to propose the name of an ‘Interim Resolution Professional’ in the application under section 7 of the ‘I&B Code’, it is desirable to notice the relevant provisions.

7. As per clause (b) of Sub-section (3) of Section 7 the ‘Financial Creditor’ required to furnish name of the resolution professional proposed to act as an ‘Interim Resolution Professional’, the relevant portion of which reads as follows:—

“7. Initiation of corporate insolvency resolution process by financial creditor.— (1) A financial creditor eith