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2019 (4) TMI 1606 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - Corporate Debtor committed default in paying debt - HELD THAT - Uncontroverted facts stated by the Financial Creditor about the debt and default by the Corporate Debtor. I hold that Financial Creditor proof both the facts that there is financial debt due and payable by the Corporate Debtor and Corporate Debtor committed default in paying the debt. The application filed by the Financial Creditor under section 7 of the Insolvency Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the Corporate Debtor, M/s. Venkateshwara Capital Mangement Ltd. is hereby admitted.
Issues Involved:
Application under Section 7 of Insolvency and Bankruptcy Code against Corporate Debtor for default in payment of debt. Detailed Analysis: 1. Debt Default and Application: The Financial Creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code against the Corporate Debtor for defaulting on a debt of ?22,97,82,021. The Corporate Debtor failed to repay the loan as agreed, leading to the application for Corporate Insolvency Resolution Process. 2. Loan Agreement and Default: The Financial Creditor disbursed a loan to the Corporate Debtor, which was later enhanced. Despite renewal agreements, the Corporate Debtor failed to make timely repayments. A letter was sent demanding repayment within 45 days, but the Corporate Debtor did not comply, prompting the insolvency application. 3. Procedural Compliance: Notice of the application was published in newspapers and sent via email to the Corporate Debtor. However, no representation was made on behalf of the Corporate Debtor, leading to an ex parte proceeding. 4. Establishing Debt and Default: The Financial Creditor presented evidence, including the Loan Agreement, renewal letters, and a Deed of Settlement, proving the debt and default by the Corporate Debtor. The Statement of Account showed the outstanding amount due. 5. Admission of Application: The Tribunal, after reviewing the documents and facts presented, admitted the application under Section 7 of the IBC. A moratorium was declared, and a Resolution Professional was appointed to oversee the Corporate Insolvency Resolution Process. 6. Moratorium and Public Announcement: The order included details about the moratorium under Section 14 of the IBC, prohibiting certain actions against the Corporate Debtor. Essential services were to continue during the moratorium period, and specific transactions were exempted. 7. Resolution Professional Appointment: Shashi Agarwal was appointed as the Resolution Professional to manage the creditors' particulars and convene a Committee of Creditors for a resolution plan. Advance fees were to be paid, and the CIRP was to be conducted in a time-bound manner. 8. Communication and Progress Report: The Registry was directed to communicate the order to all relevant parties, and a progress report filing was scheduled for a future date. Certified copies of the order were to be issued upon compliance with formalities. This detailed analysis covers the key aspects of the judgment delivered by the National Company Law Tribunal, Kolkata Bench, regarding the insolvency application against the Corporate Debtor.
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