9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1503 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT - From the application and the documents placed on record by the Financial Creditor particularly the Bank statements which indicate that part of the amount of loan was paid by the Corporate Debtor till 29th July 2017 but the default had occurred in respect of 7, 54, 68, 438/- as on 30th September 2018 and the total amount due from the Corporate Debtor in respect of the 5 (Five) Companies for which the Corporate Debtor had stood as Corporate Guarantor made the total outstanding to the tune of 19, 04, 12, 812.21p. which the Corporate Debtor has failed to pay in terms of the agreement and sanction letter. The Bank however has further secured its loan by creation of equitable mortgage of the immovable properties of the Company including land. The Financial Creditor has successfully proved that the amount outstanding has not been paid as per the agreed terms by the Corporate Debtor and a default has in fact occurred which prompts us to admit the petition which is otherwise completed - Application admitted - moratorium declared.
Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) 2. Authorization to file the petition 3. Default and classification as Non-Performing Asset (NPA) 4. Barred by law of limitation 5. Corporate guarantee and mortgage 6. Appointment of Interim Resolution Professional (IRP) 7. Declaration of moratorium Detailed Analysis: 1. Initiation of Corporate Insolvency Resolution Process (CIRP): The petition was filed by the Financial Creditor, Oriental Bank of Commerce, against the Corporate Debtor, M/s. RDH Technologies Private Limited, to initiate CIRP. The Financial Creditor had granted a term loan of ?23 crores to the Corporate Debtor, which was accepted and secured by pledging shares and creating an equitable mortgage on fixed assets. 2. Authorization to File the Petition: The Financial Creditor authorized Mr. Pankaj Kumar Verma, the Chief Manager, to file and pursue the proceedings. The Corporate Debtor disputed this, claiming Mr. Verma was not duly authorized. However, the Financial Creditor provided evidence of authorization through a Board Resolution and delegation by the General Manager. 3. Default and Classification as Non-Performing Asset (NPA): The Financial Creditor claimed an outstanding amount of ?7,54,68,438 as of 30th September 2018, with the account classified as NPA since 15th December 2012. The Corporate Debtor had also guaranteed loans for five other companies, leading to a total outstanding amount of ?19,04,12,812.21. Despite some payments made towards loan recovery, the default persisted. 4. Barred by Law of Limitation: The Corporate Debtor argued that the claim was barred by the law of limitation. However, the Financial Creditor provided documentary evidence, including bank statements and correspondences, proving that the claim was within the limitation period. 5. Corporate Guarantee and Mortgage: The Corporate Debtor had guaranteed loans for five other companies and mortgaged its assets to secure these loans. The Financial Creditor provided a Certificate of Registration for modification of charge, confirming the mortgage on the Corporate Debtor's properties. 6. Appointment of Interim Resolution Professional (IRP): The Financial Creditor proposed Mr. Ajay Kumar Agarwal as the IRP, who confirmed that no disciplinary proceedings were pending against him. The Tribunal appointed Mr. Agarwal to ascertain the particulars of creditors and convene a meeting of the Committee of Creditors. 7. Declaration of Moratorium: Upon admitting the petition, the Tribunal declared a moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016. This moratorium prohibits: - Institution or continuation of suits or proceedings against the Corporate Debtor. - Transferring, encumbering, or disposing of any assets or legal rights. - Foreclosure or enforcement of any security interest. - Recovery of any property occupied by the Corporate Debtor. The moratorium will remain effective until the completion of the CIRP, unless a resolution plan is approved or a liquidation order is passed. Orders: 1. The application under Section 7 of the Insolvency & Bankruptcy Code, 2016, is admitted. 2. A moratorium is declared for the purposes referred to in Section 14. 3. The IRP is to make a public announcement and call for claims. 4. The IRP is to convene a meeting of the Committee of Creditors within 105 days. 5. The Registry is directed to communicate the order to the concerned parties. 6. The matter is listed for a progress report on 27th September 2019. 7. Certified copies of the order may be issued to all concerned parties upon compliance with requisite formalities.
|
