2021 (6) TMI 347 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Corporate Applicant - existence of debt and dispute or not - HELD THAT - The Corporate Applicant has enclosed the audited financial statements for the years 2017-18 and 2018-2019, the provisional financial statement as on 31.10.2019 - The registrar of companies and Income Tax department filed reports and stated that they have no objection in allowing the present application - The registered office of the Corporate Applicant is situated at Delhi and therefore this tribunal has jurisdiction to entertain and try this application. The present application is filed on the Performa prescribed under Rule 7 of the Insolvency and Bankruptcy Code, 2016 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 r/w Section 10 of the code and is complete - this Bench is of the view that the Corporate Applicant has defaulted in making payment of its debt to the creditors. Hence, this application is admitted. Application admitted - moratorium declared.

Summary

Issues:
1. Application under section 10 of Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency process.
2. Company history, changes in name, business activities, and financial details.
3. Inability to pay debts, financial position, and liabilities exceeding assets.
4. Pending cases against the company for recovery and arbitration.
5. Resolution passed for initiating Corporate Insolvency Resolution Process.
6. Appointment of Interim Resolution Professional and deposit of funds.
7. Communication of the order to relevant parties and authorities.

Analysis:

1. The application was filed under section 10 of the Insolvency and Bankruptcy Code, 2016, by the director authorized for initiating Corporate Insolvency process for the Corporate Debtor, Suvidha Parklift Limited.

2. The company's history includes changes in name, business activities, and financial details such as share capital, incorporation dates, and changes in registered office address.

3. The applicant admitted the company's inability to pay debts, with liabilities exceeding assets, poor financial performance, and inability to run the business as a going concern due to financial constraints.

4. Pending cases against the company included a summary suit for recovery and arbitration proceedings for substantial amounts, indicating financial distress and legal challenges faced by the company.

5. A resolution was passed by the members of the company to initiate the Corporate Insolvency Resolution Process, complying with the provisions of the Insolvency and Bankruptcy Code, 2016.

6. An Interim Resolution Professional was appointed, and the company was directed to deposit funds to meet expenses and perform necessary functions in accordance with regulations within a specified timeframe.

7. The order was communicated to relevant parties, including the Interim Resolution Professional, IBBI, and ROC, for compliance, record-keeping, and updating of information, ensuring transparency and procedural adherence in the insolvency process.