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2020 (4) TMI 702 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate debtor failed to make payment of outstanding dues - existence of dispute or not - HELD THAT - In respect of petition filed under section 7 of I B Code for initiation of CIRP by Financial Creditor, the Adjudicating Authority has to see the existence of financial debt, whether the default has occurred and whether the petition is complete. From the records submitted alongwith the petition, it can be said that the petition in Form-1 filed by Shri Dinesh Kumar Patwari, AGM of the Bank and in support of the same, the Petitioner has filed authorization papers. The petition is complete - There is financial debt owed by the Respondent to the Petitioner. Time Limitation - HELD THAT - Date of NPA is 31-5-2015. The last date of transaction is on 30-6-2016 - The petition is filed on 18-3-2019 and is well within time. Petition allowed.
Issues:
1. Initiation of Corporate Insolvency Resolution Process under Section 7 of the Insolvency & Bankruptcy Code, 2016. 2. Existence of financial debt, default occurrence, and completeness of the petition. 3. Appointment of Interim Insolvency Resolution Professional. Analysis: Issue 1: The petition was filed by the Financial Creditor under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor, Aswaraj Infra Private Ltd. The Financial Creditor, a bank, had sanctioned financial facilities to the Corporate Debtor, which were secured by equitable mortgage of property and hypothecation of movable assets. The Corporate Debtor defaulted on repayment, leading to the classification as Non-Performing Asset (NPA). The Financial Creditor provided evidence of the existence of financial debt and the default, leading to the admission of the petition by the Adjudicating Authority. Issue 2: The Adjudicating Authority assessed the completeness of the petition and found it in order. It confirmed the existence of financial debt, the default date, and the timeliness of the petition filing. The Authority noted the proposal for the appointment of an Interim Resolution Professional (IRP) and approved the same. The Authority declared a moratorium on various actions against the Corporate Debtor as per the provisions of the Insolvency & Bankruptcy Code, 2016, upon admitting the petition. The order included the appointment of the proposed IRP to oversee the Corporate Insolvency Resolution Process. Issue 3: The Adjudicating Authority appointed Mr. Gaurav Ashok Adukia as the Interim Insolvency Resolution Professional to manage the affairs of the Corporate Debtor during the resolution process. The Authority communicated the order to all relevant parties involved, including the Petitioner, Financial Creditor, Corporate Debtor, and the appointed IRP. The petition was allowed, and the matter was disposed of, with the necessary directions and notifications issued to ensure the effective implementation of the resolution process. This judgment showcases the procedural adherence and legal scrutiny involved in initiating the Corporate Insolvency Resolution Process under the Insolvency & Bankruptcy Code, emphasizing the importance of meeting the statutory requirements and evidentiary standards for successful admission and progression of insolvency proceedings.
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