9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1571 - 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 - No evidence has been furnished to show that the details were filled in by the Financial Creditor after the Corporate Debtor executed the loan security documents and personal guarantee. The learned counsel for the Corporate Debtor has referred to a blast in dyeing house factory in August 2014 in the associate company of the Corporate Debtor. These facts are not relevant for the present case where the issue involved is whether a default has occurred. In Part-IV of Form-I, the bank has stated that the account was declared NPA on 31-12-2015. The fact that the account became NPA on 31-12-2015 is not disputed by the Corporate Debtor. Further, the Bank issued notice to the Corporate Debtor under section 13(2) of the SARFAESI Act on 4-2-2016 in which the outstanding dues of ₹ 35,94,27,831.52 were demanded. The occurrence of default in the present case is proved. We find that the application filed in the prescribed Form-I is complete. The proposed Interim Resolution Professional, Mr. Anup Sood has filed Form No. 2 (Pages 2 to 4 of CA No. 1103/2019) certifying that there are no disciplinary proceedings pending against him with the Board or Insolvency Professional Agency of ICAI. It is also stated that he is currently serving as Interim Resolution Professional and Resolution Professional in one case each - conditions provided for by Section 7(5)(a) of the Code being satisfied in the present case, we direct that the application for initiation of CIRP against M/s Anand Tex India Private Limited be admitted. Application admitted - moratorium declared.
Issues Involved:
1. Withdrawal and replacement of the Interim Resolution Professional (IRP). 2. Initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. 3. Admission of the application under Section 7 of the Insolvency and Bankruptcy Code, 2016. 4. Declaration of Moratorium and appointment of IRP. Detailed Analysis: 1. Withdrawal and Replacement of the Interim Resolution Professional (IRP): The Company Application No. 1103/2019 was filed to place on record Form-2 under Rule 9 of the Insolvency and Bankruptcy Code. The proposed IRP, Mr. Naresh Kumar Sood, withdrew his consent due to personal reasons. The petitioner submitted the written consent (Form-2) from the newly proposed IRP, Mr. Anup Sood. The Tribunal allowed the request for the change of the proposed IRP's name, and CA No. 1103/2019 was disposed of accordingly. 2. Initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor: The application in Form No. 1 was filed by the Bank of India to initiate CIRP against the Corporate Debtor under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor was incorporated on 8-6-2012, and the jurisdiction was confirmed to lie with the Chandigarh Bench of the Tribunal. The debt granted included facilities amounting to ?34.65 crores, with the total amount due as on 22-3-2018 being ?39,74,26,257.41. The loan accounts were declared NPA on 31-12-2015. 3. Admission of the Application under Section 7 of the Insolvency and Bankruptcy Code, 2016: The Corporate Debtor's credit facilities were secured by various assets, including factory land, building, machinery, and personal guarantees. Due to default in repayment, the financial creditor issued notice under Section 13(2) of the SARFAESI Act on 4-2-2016, demanding outstanding dues of ?35,94,27,831.52. The Tribunal noted that the Corporate Debtor had not disputed the NPA status as of 31-12-2015. The application was filed within the limitation period, and the Tribunal found the application complete as per Section 7(5)(a) of the Code, confirming the occurrence of default. 4. Declaration of Moratorium and Appointment of IRP: The Tribunal declared a Moratorium under Section 14(1) of the Code, prohibiting the institution or continuation of suits, transferring or disposing of assets, and any action to enforce security interests against the Corporate Debtor. The supply of essential goods or services to the Corporate Debtor was directed not to be terminated during the moratorium period. The moratorium would remain in effect until the completion of the CIRP or the approval of a resolution plan or an order for liquidation. The Tribunal appointed Mr. Anup Sood as the Interim Resolution Professional (IRP) with specific directions, including taking control of the Corporate Debtor's assets, making a public announcement, and constituting a committee of creditors. The IRP was also directed to send regular progress reports to the Tribunal every fortnight. A copy of the order was to be communicated to both parties, and the counsel for the petitioner was instructed to deliver the order to the IRP immediately. The Registry was also directed to send a copy of the order to the IRP via email.
|
