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E.S. Krishnamurthy v. M/s. Bharath Hi Tech Builders Pvt. Ltd.

Insolvency and Bankruptcy Code 2016 – Section 3 (11) – A “debt” is defined to be a liability or an obligation in respect of a claim due from any person. This includes a financial debt and an operational debt.

The Adjudicating Authority cannot compel a party to the proceedings before it to settle a dispute

The Adjudicating Authority has clearly acted outside the terms of its jurisdiction under Section 7(5) of the IBC. The Adjudicating Authority is empowered only to verify whether a default has occurred or if a default has not occurred. Based upon its decision, the Adjudicating Authority must then either admit or reject an application respectively. These are the only two courses of action which are open to the Adjudicating Authority in accordance with Section 7(5).