2017 (11) TMI 231 - Tri - Insolvency and Bankruptcy

Corporate insolvency resolution process - Held that - As total amount of default in respect of Financial Creditor is ₹ 18,28,06,681.30 and for the unsecured loan the amount in default is ₹ 5,49,78,143/-. The amount in default towards Operational Creditors is ₹ 46,55,411/-. The company has not accepted any public deposits. In view of the above discussion, the instant petition deserves to be admitted. It is, however, observed that the Applicant Company save some sketchy particulars has not given any road map as to how it is going to keep itself afloat as a going concern. However, keeping in perspective the objects for which the Code has been brought into force and to balance the interest of all stakeholders, we are satisfied that the instant application warrants to be admitted to prevent further erosion of capital and to safeguard the assets of the petitioner-Corporate Debtor.The petition is, therefore, admitted and the moratorium is declared in terms of Section 14 of Code.

Issues Involved:
1. Application for initiating insolvency resolution process under Section 10 of the Insolvency and Bankruptcy Code, 2016.
2. Territorial jurisdiction and incorporation details of the Corporate Debtor.
3. Financial and operational creditors' details.
4. Default in payment and actions taken by the financial creditor.
5. Compliance with procedural requirements under Section 10 of the Code.
6. Admission of the application and declaration of moratorium.

Issue-wise Detailed Analysis:

1. Application for Initiating Insolvency Resolution Process:
The application was filed by Oasis Agroinfra Limited, the Corporate Debtor, under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating insolvency resolution process. The Corporate Debtor qualifies as a corporate applicant as per Section 5(5) of the Code.

2. Territorial Jurisdiction and Incorporation Details:
The petitioner was incorporated on 19.10.2010 and has its registered office in Bathinda, falling within the territorial jurisdiction of the Tribunal. The company’s CIN is U15490PB2010PLC034368. The application was filed through Mr. Keshav Kumar Bansal, Director, authorized by the Board of Directors.

3. Financial and Operational Creditors' Details:
The petitioner listed its financial and operational creditors, including secured creditors like Punjab National Bank with a total debt of ?18,28,06,681.30 and unsecured loans from promoters amounting to ?5,49,78,143.00. Operational creditors' dues amounted to ?46,55,411.00.

4. Default in Payment and Actions Taken by the Financial Creditor:
Due to defaults in payment, Punjab National Bank issued a Demand Notice under Section 13(2) of the SARFAESI Act, 2002. The bank admitted to initiating action under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, for recovery of the outstanding amount.

5. Compliance with Procedural Requirements under Section 10 of the Code:
The application complied with Section 10 of the Code, which requires:
- Existence of a Corporate Debtor.
- Default by the Corporate Debtor.
- Filing of an application by the Corporate Applicant.
- Furnishing of books of accounts and other documents.
- Proposal of an Interim Resolution Professional.
The petitioner provided all necessary information, including balance sheets, financial statements, and details of creditors. The proposed Interim Resolution Professional, Mr. Vikram Bajaj, was found to be in order.

6. Admission of the Application and Declaration of Moratorium:
The Tribunal found the application complete and admitted it. A moratorium was declared under Section 14 of the Code, which includes:
- Suspension of suits or proceedings against the Corporate Debtor.
- Prohibition on transferring or disposing of assets.
- Suspension of actions to enforce security interests.
- Protection of essential goods or services supply.
The moratorium does not affect proceedings against the guarantors. The matter was listed for the appointment of the Interim Resolution Professional on 03.10.2017.

Conclusion:
The Tribunal admitted the application for initiating the insolvency resolution process, declared a moratorium, and directed the continuation of essential services. The case was scheduled for further orders regarding the appointment of the Interim Resolution Professional.

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