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2021 (7) TMI 852 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - account was classified as NPA - time limitation - HELD THAT - Although the NPA was declared in respect of Corporate Debtor in 2012, but the Corporate Debtor kept on acknowledging its Debt in its correspondence letters with the Bank and also the Respondent had made part payment of ₹ 10,00,000/- towards loan liability in the year 2017 while the present IB petition is filed in 2018. Hence it is found to be filed well within limitation. Since the Respondent did not file its Reply/objection to the present IB petition, it goes uncontested. Hence the Debts which are more than Rs. One Lakh stands admitted and the default in making repayment of loan goes undisputed. Therefore the present IB petition is found to be filed in conformity with the provisions of the Code and rules, regulations made thereunder. Hence is found complete and CIRP can be triggered in respect of present Respondent. For the aforesaid reasons, the present IB petition deserves for Admission. On perusal of the documents annexed with the IB petition it is found that the Respondent/Corporate Debtor has committed default in repayment of debt. The disbursement of loan amount is substantiated by the Statement of accounts of the Petitioner. The Liability of the Respondent Corporate Debtor is also reflected in ledger account of the Respondent in the books of the Petitioner. Therefore it is a fit case where the CIRP can be triggered in respect of the present Corporate Debtor. Petition admitted - moratorium declared.
Issues Involved:
Company petition under section 7 of the Insolvency and Bankruptcy Code, 2016 seeking Corporate Insolvency Resolution Process (CIRP) against a Private Company for default in payment of a Financial Debt. Detailed Analysis: 1. Default and Loan Details: - The Petitioner filed a Company Petition under section 7 of IBC in 2018 against the Respondent for defaulting on a debt of ?92,01,03,572 as of 31.10.2018. The loan was disbursed by Bank of India in two tranches, a Term Loan of ?26,00,00,000 and Cash Credit of ?10,00,00,000. 2. Acknowledgment of Debt and Default: - The Respondent acknowledged the loan disbursement and liability to repay in correspondence dated 15.06.2012. Despite the NPA declaration in 2012, the Respondent made part payments in 2017, confirming the debt acknowledgment. 3. Uncontested Petition and Admission: - The Respondent did not file any reply or objection to the petition, leading to an ex parte hearing. The debt exceeding ?1 lakh stands admitted, and the default in repayment is undisputed, making the petition compliant with IBC provisions. 4. Resolution Process and Interim Resolution Professional (IRP): - The Petitioner proposed an Interim Resolution Professional, Mr. Sameer Kakar, whose appointment was accepted. The CIRP was ordered to commence immediately, with directions for moratorium under section 14 of IBC. 5. Moratorium and Directions: - The moratorium includes restrictions on legal actions against the Respondent, asset disposal, and recovery actions. Essential services supply to the Respondent shall continue during the moratorium period. 6. Management and Expenses: - The management of the Respondent during CIRP vests in the IRP. The Petitioner is directed to deposit funds with the IRP for expenses related to public notice and claims. The Registry is tasked with communicating the order to relevant parties promptly. 7. Compliance and Reporting: - The IRP is mandated to comply with IBC regulations, issue periodical progress reports, and manage the CIRP effectively. The Respondent's officers and managers must cooperate with the IRP by providing necessary documents and information. 8. Communication and Updates: - The Registry is instructed to communicate the order to all parties involved promptly. Additionally, the Registrar of Companies is to be informed to update the Respondent's Master Data. This detailed analysis covers the key aspects of the judgment, outlining the debt default, acknowledgment, uncontested petition, resolution process, moratorium, IRP appointment, management directives, compliance requirements, and communication protocols for effective implementation of the CIRP.
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