2019 (11) TMI 1576 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor has defaulted in making repayment of loan/credit facilities to the Petitioner Bank - period of limitation - HELD THAT - This Adjudicating Authority is satisfied that, (a) The Corporate Debtor availed the loan/credit facilities from the Financial Creditor Bank (b) Existence of debt is above Rs. One Lakh; (c) Debt is due; (d) Default has occurred on 12-8-2015. (e) Petition had been filed within the limitation period; (f) Copy of the Application filed before the Tribunal has been sent to the Corporate Debtor and Corporate Debtor appeared before this Tribunal from 10-12-2018 and thereafter; (g) The application filed by the Petitioner Bank under section 7 of IBC is found to be complete for the purpose of initiation of Corporate Insolvency Resolution Process against the Corporate Debtor. Hence, the present IB Petition is admitted with the following Directions/observations. The date of admission of this petition is 6-11-2019. The present IB petition filed under section 7 of the IBC stands admitted

Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016.
2. Existence and default of debt.
3. Substitution of Dena Bank with Bank of Baroda due to amalgamation.
4. Appointment of Interim Resolution Professional (IRP).
5. Declaration of moratorium.
6. Adherence to the time limit for completion of CIRP.

Detailed Analysis:

1. Initiation of Corporate Insolvency Resolution Process (CIRP):
The Financial Creditor, Dena Bank, filed an I.B. Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of CIRP against the Corporate Debtor, Alps Pharmaceuticals Private Limited, for defaulting on repayment of loan/CC facility. The application was filed by a duly authorized officer of Dena Bank.

2. Existence and Default of Debt:
The Corporate Debtor availed various loan facilities, including a Cash Credit limit and a Letter of Credit limit, sanctioned by the Financial Creditor. The total aggregate facilities amounted to ?29.50 Crores. The Corporate Debtor defaulted on payment, with the date of default being 12-8-2015. The CIBIL Report and the statements of accounts confirmed the default. The Financial Creditor provided detailed documentation, including sanction letters, valuation reports, and acknowledgments of debt and securities, substantiating the existence and default of the debt.

3. Substitution of Dena Bank with Bank of Baroda:
An IA was filed to substitute the name of Dena Bank with Bank of Baroda due to the amalgamation of the two banks, as per the Government of India's notification dated 20-1-2019. The IA was admitted, and the substitution was approved.

4. Appointment of Interim Resolution Professional (IRP):
The Financial Creditor suggested the name of an Insolvency Professional to be appointed as the IRP. The proposed IRP provided his consent in writing. The Tribunal appointed Mr. Bhupendra Singh Narayan Singh Rajput as the IRP and directed him to make a public announcement of the moratorium and proceed as per the relevant provisions of the Insolvency and Bankruptcy Code.

5. Declaration of Moratorium:
The Tribunal declared a moratorium effective from the date of the order, prohibiting the institution or continuation of suits or proceedings against the Corporate Debtor, transferring or disposing of any assets, and recovering any property occupied by the Corporate Debtor. The moratorium would remain in effect until the completion of the CIRP.

6. Adherence to the Time Limit for Completion of CIRP:
The IRP was advised to adhere to the stipulated time limit for completing the CIRP and perform duties as specified under Sections 17, 18, 20, and 21 of the Insolvency and Bankruptcy Code. The personnel of the Corporate Debtor were advised to cooperate with the IRP as required under Section 19 of the Code.

Conclusion:
The Tribunal, after considering the material papers, arguments, and submissions of both parties, was satisfied with the existence of debt, default, and the completeness of the petition filed within the limitation period. The IB Petition was admitted, and directions were given for the initiation of CIRP, appointment of IRP, and declaration of moratorium. The Registry was directed to communicate the order to relevant parties immediately.

← Previous Next →