2018 (6) TMI 1622 - Tri - Insolvency and Bankruptcy

Initiation of Corporate Insolvency Resolution Process - Corporate Debtor - Default in repayment of outstanding loan - HELD THAT - This Bench is satisfied that the debt is in existence against the corporate Debtor and that the corporate Debtor has defaulted in making repayment of the claim amount mentioned in this company Petition despite hectic efforts were made by the petitioner to get back the due outstanding against the corporate Debtor, for nothing has been worked out, the petitioner proceeded against this corporate Debtor under Section 7 of Insolvency Bankruptcy, 2016. This Petition is admitted - The Registry is hereby directed to communicate this order to both the parties within seven days from the date order is made available.

Summary

Issues involved:
- Default in repayment by the Corporate Debtor
- Existence of debt and default
- Appointment of an Interim Resolution Professional

Default in repayment by the Corporate Debtor:
The petition was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 by a Financial Creditor against the Corporate Debtor for defaulting on repayment of dues outstanding in relation to a Rupee Term Loan and Open Cash Credit Facility. The Petitioner provided details of the facilities granted, including a Term Loan Facility and Open Cash Credit Facility, along with evidence such as loan agreements, sanction letters, and account statements to establish the sanctioning and disbursal of the loan amounts. The Corporate Debtor had mortgaged immovable properties and hypothecated movable assets as security for the loans. The Petitioner also presented reports and documents showing the default amounts and dates, as well as notices sent to the Corporate Debtor demanding repayment, which went unanswered.

Existence of debt and default:
The Bench reviewed the material papers provided by the Petitioner and confirmed the existence of the debt against the Corporate Debtor, along with the default in repayment despite efforts made by the Petitioner to recover the outstanding amount. The Petitioner's submission of documents demonstrating the debt and default led the Bench to admit the Company Petition. The order included reliefs such as instituting suits against the Corporate Debtor, imposing a moratorium on certain actions, and appointing an Interim Resolution Professional to oversee the insolvency resolution process. The order of moratorium was to be effective from a specified date until the completion of the resolution process or liquidation, as approved by the Bench.

Appointment of an Interim Resolution Professional:
The Bench appointed an Interim Resolution Professional to manage the assets of the Corporate Debtor during the insolvency resolution process. The appointed professional was tasked with specific functions under the Insolvency & Bankruptcy Code to facilitate the resolution proceedings effectively. The order of admission of the petition was communicated to both parties by the Registry within a stipulated timeframe.