9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1140 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment - outstanding amount due and payable to applicant - HELD THAT - The Corporate Debtor availed various financial facilities like working capital, term loan, current account etc with the applicant since 2012. The Corporate Debtor also executed various loan documents in favour of the applicant in July 2014, April, 2015 and March, 2017. However, the Corporate Debtor was unable to repay loan hence, the loan accounts were declared as non-performing asset on 13.03.2018. The loans are secured by way of hypothecation of movables and mortgage of immovable properties - The loan documents and acknowledgement of debt are filed along with the application. The loan account was declared as non-performing asset on 13.03.2018. Further, claim is also pending in the file of DRT Jabalpur. Hence, the debt is well within the period of limitation. The registered office of the Corporate Debtor is at Raipur, Chhattisgarh. Hence, this Adjudicating Authority has jurisdiction - The outstanding amount due and payable to applicant is sum of ₹ 10,26,54000/- as on 31.03.2018. The debt and default are proved beyond reasonable doubts. Hence, we are inclined to ADMIT this application. Application admitted - moratorium declared.
Issues:
1. Initiation of Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code, 2016 against a company. 2. Jurisdiction of the Adjudicating Authority. 3. Appointment of Interim Resolution Professional. 4. Declaration of moratorium under Sections 13, 14, and 15 of the Insolvency and Bankruptcy Code, 2016. 5. Duties and responsibilities of the Interim Resolution Professional. 6. Communication of the order to relevant parties. Analysis: 1. The judgment pertains to an application filed by Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process against a company, M/s. Tayal Food Limited. The company had availed financial facilities from the bank but failed to repay the loans, leading to the declaration of the loan accounts as non-performing assets. The debt and default were established, justifying the admission of the application by the Tribunal. 2. The Tribunal established its jurisdiction over the matter as the registered office of the Corporate Debtor was located in Raipur, Chhattisgarh. This jurisdictional aspect was crucial for the Tribunal to proceed with the case and admit the application for Corporate Insolvency Resolution Process. 3. An Interim Resolution Professional, Mr. Jagdish Kumar, was appointed by the Tribunal to oversee the process. The professional was tasked with ascertaining the particulars of creditors, convening a Committee of Creditors, and evolving a Resolution Plan within the specified timeline. The appointment of the Interim Resolution Professional was a significant step in the insolvency resolution process. 4. The Tribunal declared a moratorium under Sections 13, 14, and 15 of the Insolvency and Bankruptcy Code, 2016. This moratorium prohibited various actions, including the institution of suits against the Corporate Debtor, transfer of assets, recovery of property, and specified the continuity of essential goods or services supply during the moratorium period. The order of moratorium was to remain in effect until the completion of the Corporate Insolvency Resolution Process. 5. The Interim Resolution Professional was directed to convene a meeting of the Committee of Creditors, submit the Resolution Plan, and identify prospective Resolution Applicants within the stipulated timeline. Additionally, the professional was required to file a 1st Progress Report by a specified date and communicate the necessary information to relevant parties promptly. 6. The Tribunal issued directions for the communication of the order to the Financial Creditor, the Corporate Debtor, and the appointed Interim Resolution Professional through Speed Post and email. This communication was essential to ensure all parties were informed of the Tribunal's decision and the subsequent steps in the insolvency resolution process.
|
