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2018 (12) TMI 1864 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - HELD THAT - The provisions of Section 7 (2) and Section 7 (5) of IBC have been complied - After a conjoint reading of the aforesaid provision along with Rule 4 (2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016 it is satisfying that a default has occurred and the application under sub section 2 of Section 7 is complete. The name of the IRP has been proposed and there are no disciplinary proceedings pending against the proposed Interim Resolution Professional. Petition admitted - moratorium declared.
Issues:
1. Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process. 2. Default amount claimed by the financial creditor. 3. Appointment of Insolvency Professional. 4. Compliance with Section 7(2) and Section 7(5) of the IBC. 5. Declaration of moratorium under Section 14 of the Code. Analysis: 1. The Petitioner, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against the respondent, a corporate debtor, Adel Landmarks Limited. The financial creditor, a company formerly known as Era Landmarks Limited, claimed default by the corporate debtor and requested the tribunal to trigger the insolvency process. 2. The financial creditor detailed the default amount owed by the corporate debtor, which included a Loan Facility of ?170 Crores sanctioned by ECL Finance Ltd, along with Corporate Guarantees provided to Rational Buildcon Pvt Ltd. The total default amount as of a specific date was specified, supported by a tabular chart illustrating the calculation of the default amount. 3. The financial creditor proposed the appointment of Mr. Udayraj Patwardhan as the Insolvency Professional, providing all necessary details and documentation as per the requirements of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 4. The tribunal examined the compliance with Section 7(2) and Section 7(5) of the Insolvency and Bankruptcy Code, finding that the requirements for initiating the Corporate Insolvency Resolution Process were fulfilled. The tribunal noted that the default had occurred, the application was complete, and there were no pending disciplinary proceedings against the proposed Interim Resolution Professional. 5. Consequently, the tribunal admitted the petition, appointing Mr. Udayraj Patwardhan as the Interim Resolution Professional. A public announcement of the admission of the application under Section 7 of the Code was directed to be made within three days. Additionally, a moratorium was declared under Section 14 of the Code, with exceptions specified for certain transactions and the supply of essential goods or services to the corporate debtor during the moratorium period. Overall, the tribunal's detailed analysis and compliance assessment led to the admission of the petition, appointment of the Interim Resolution Professional, and the declaration of a moratorium, ensuring the initiation of the Corporate Insolvency Resolution Process in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.
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