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2018 (10) TMI 1680 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process (CIRP) - Default on the part of Corporate Debtor to make repayment of loans - section 7 of the Insolvency and Bankruptcy Code, 2016 r/w rule 4 of Insolvency Bankruptcy (Application to Adjudicating Authority ) Rules, 2016 - HELD THAT - Tribunal observes that there is a debt due and payable by the Corporate Debtor and that a default has occurred on the amount which the Corporate Debtor was responsible to pay. The FC has issued a demand notice dated 03.01.2014 for repayment of outstanding amount of and the DRT vide its order dated 23.09.2015 held that the CD is liable to pay the outstanding dues and that it is not barred by limitation. The amount claimed by the FC in this petition amounts to and the claim is not barred by limitation - the FC has established that the amount in default committed by the Corporate Debtor is fact and it is supported by the documentary evidence placed before the Adjudicating Authority. Commencement of the Corporate Insolvency Resolution Process is ordered which shall ordinarily get completed within 180 days, reckoning from the day this order is passed - Ms.J.Karthiga, appointed as Interim Resolution Professional (IRP) as proposed by the Applicant - Moratorium declared - petition admitted.
Issues Involved:
1. Application under section 7 of the Insolvency and Bankruptcy Code, 2016. 2. Default in repayment by the Corporate Debtor. 3. Assignment of debts from ICICI Bank to Standard Chartered Bank and then to the Financial Creditor. 4. Challenge by the Corporate Debtor regarding the application. 5. Appointment of Interim Resolution Professional and declaration of moratorium. Issue 1: Application under section 7 of the Insolvency and Bankruptcy Code, 2016 The National Company Law Tribunal, Chennai, considered a Company petition filed by M/S. International Asset Reconstruction Company Pvt Ltd against M/S. Solidaire India Limited under section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was filed for the recovery of a debt amount claimed to be in default by the Corporate Debtor, along with interest, as per the details provided in the application. Issue 2: Default in repayment by the Corporate Debtor The Corporate Debtor had defaulted in the repayment of the amounts due to the Assignor of the Financial Creditor, leading to the initiation of enforcement proceedings under the SARFAESI Act. Despite challenges raised by the Corporate Debtor regarding the possession notice and debt recovery, the Tribunal found that there was a debt due and payable by the Corporate Debtor, supported by documentary evidence, and that the default committed was a fact. Issue 3: Assignment of debts from ICICI Bank to Standard Chartered Bank and then to the Financial Creditor The debts due of the Corporate Debtor were successively assigned from ICICI Bank Limited to Standard Chartered Bank and finally to the Financial Creditor. The Financial Creditor issued demand notices and took possession of mortgaged securities after defaults in repayment, following legal procedures under the SARFAESI Act. Issue 4: Challenge by the Corporate Debtor regarding the application The Corporate Debtor raised objections regarding the application, citing non-disclosure of certain court orders and ongoing legal proceedings. However, the Tribunal observed that the Financial Creditor had established the debt and default by the Corporate Debtor, dismissing the objections raised by the Corporate Debtor and admitting the petition for Corporate Insolvency Resolution Process. Issue 5: Appointment of Interim Resolution Professional and declaration of moratorium The Tribunal ordered the commencement of the Corporate Insolvency Resolution Process, appointing an Interim Resolution Professional to manage the affairs of the Corporate Debtor. A moratorium was declared to prohibit certain actions against the Corporate Debtor during the resolution process, ensuring continuity of essential services and compliance with the provisions of the Insolvency and Bankruptcy Code. This detailed analysis of the judgment provides insights into the legal proceedings, debt recovery, assignment of debts, challenges raised, and the subsequent actions taken by the Tribunal for the resolution of the insolvency matter.
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