2019 (3) TMI 1947 - Tri - Insolvency and Bankruptcy

Maintainability 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 Corporate Debtor is liable to pay the Petitioner and defaulted in making the payment to the Petitioner. During the hearing of this matter by this Bench, the Counsel representing the Corporate Debtor accepted the liability as well as default. This Adjudicating Authority, on perusal of the documents filed by the Creditor, is of the view that the Corporate Debtor defaulted in repaying the loans availed and also placed the name of the Insolvency Resolution Professional to act as Interim Resolution Professional and there being no disciplinary proceedings pending against the proposed resolution professional, therefore the Application under sub-section (2) of Section 7 is taken as complete, accordingly this Bench hereby admits this Petition - Petition admitted - moratorium declared.

Summary

Issues Involved:
1. Corporate Insolvency Resolution Process sought by a bank against a corporate debtor for default in repayment.

Analysis:
The petitioner, a bank, sought the Corporate Insolvency Resolution Process against the corporate debtor due to default in repayment of facilities granted. The default occurred on 30.09.2013, with outstanding amounts towards principal and interest. The petitioner provided details of the facilities granted, outstanding amounts, and security documents connected with the loan sanction. The account of the corporate debtor turned into Non-Performing Assets (NPA) on the mentioned date, and the petitioner issued a SARFAESI notice in 2016. Additionally, the petitioner mentioned pending legal proceedings related to the debt recovery tribunal. Notices demanding outstanding amounts were sent to the corporate debtor, and a certificate under the Banker's Books Evidence Act was annexed. During the hearing, the corporate debtor accepted the liability and default. The Adjudicating Authority found the default in repayment, appointed an Interim Resolution Professional, and admitted the petition, imposing restrictions and initiating the moratorium period.

The Adjudicating Authority prohibited various actions against the corporate debtor, appointed an Interim Resolution Professional, and imposed a moratorium period. The order included directions regarding the supply of essential goods or services, exceptions to Section 14 provisions, the timeline and effect of the moratorium, the public announcement of the insolvency resolution process, and the appointment of the Interim Resolution Professional. The order specified the actions to be taken during the moratorium period and the responsibilities of the appointed professional. The registry was directed to communicate the order to the parties and the Interim Resolution Professional promptly.