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2018 (1) TMI 6 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - Held that - Default as contemplated under the provisions of IBC, 2016 has been established by the Financial Creditor viz-a-viz the Corporate Debtor and in the circumstances the Petition stands admitted
Issues:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. 2. Authorization of the Financial Creditor's representative to file the application. 3. Compliance with procedural requirements for initiating CIRP. 4. Establishment of default by the Financial Creditor against the Corporate Debtor. 5. Appointment of Interim Resolution Professional (IRP) and imposition of moratorium. Issue 1: Initiation of Corporate Insolvency Resolution Process (CIRP) The case involves RCI Industries and Technologies Limited, claiming to be a Financial Creditor of CK Infrastructure Ltd., filing an application seeking the initiation of CIRP under the Insolvency and Bankruptcy Code, 2016. The Financial Creditor provided a loan of ?50.00 lakhs to the Corporate Debtor, repayable within 30 days, with interest. Despite various attempts by the Financial Creditor, the Corporate Debtor failed to repay the loan, leading to the filing of the application to initiate the CIRP process. Issue 2: Authorization of the Financial Creditor's representative The application was filed by M/s Satinder Kapur & Associates on behalf of the Financial Creditor. The document included a certified true copy of the Resolution passed by the Financial Creditor, authorizing Mr. Abhishek Kedia, Company Secretary, to act as the authorized representative to initiate legal proceedings under the IBC, 2016. The authorization was deemed valid, and Mr. Abhishek Kedia was authorized to file the application. Issue 3: Compliance with procedural requirements The application complied with the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, and the Financial Creditor had duly dispatched an advance copy of the application to the Corporate Debtor. The Petitioner also proposed the name of an Interim Resolution Professional (IRP) as required under the rules, who had given consent to act if appointed. Issue 4: Establishment of default by the Financial Creditor The Financial Creditor provided evidence of default by the Corporate Debtor, including the dishonor of a cheque issued for repayment and subsequent failure to arrange funds despite requests. The Financial Creditor sent a legal notice demanding payment, which went unanswered, leading to the application for CIRP. Issue 5: Appointment of Interim Resolution Professional and imposition of moratorium The Tribunal found that the default by the Corporate Debtor was established, leading to the admission of the Petition. Mr. Umesh Garg was appointed as the Interim Resolution Professional, and a moratorium was declared on various actions related to the Corporate Debtor. The Board of Directors of the Corporate Debtor was suspended, and necessary directions were given for communication of the order to both parties. This comprehensive analysis covers the key issues and details of the judgment delivered by the National Company Law Tribunal, New Delhi.
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