2022 (11) TMI 456 - Tri - Insolvency and Bankruptcy

Maintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - whether the present application is filed within limitation? - HELD THAT - It can be seen from the records that the date of default is 30.09.2017 i.e. the date on which the account of the corporate debtor was declared Non Performing Asset and the last date for filing the present petition was 29.09.2020. The present petition is filed vide Diary No. 00667 dated 01.07.2021. The period from 15.03.2020 till 28.02.2022 stands excluded by virtue of order passed by Hon ble Supreme Court in IN RE COGNIZANCE FOR EXTENSION OF LIMITATION 2021 (5) TMI 564 - SC ORDER - the present petition is filed within limitation. Whether there is default in payment or not? - HELD THAT - It is observed from the record that in the present case, the default is evidenced by the sanction letter dated 18.06.2015 and 07.03.2017, working for computation of default, Memorandum of deposit of title deed, registration of charge issued by the Registrar of Companies, CERSAI report, record of default with Information Utility, Packaging Credit Agreement dated 02.02.2016, Hypothecation of goods and book debts, hypothecation of movable assets dated 02.02.2016, agreement of guarantee dated 02.02.2016, statement of account, agreement of hypothecation of current asset dated 02.02.2016, balance and security confirmation, recall notice dated 09.11.2017 and NPA certificate dated 13.05.2021 - he respondent corporate debtor has proceeded ex parte, thus, there is no rebuttal to the claim of petitioner. The application filed in the prescribed Form No.1 is found to be complete. Another condition is that there are no disciplinary proceedings pending against the proposed Resolution Professional. In the present case, in Part III of Form 1, Mr. Hemanshu Jetley has been proposed as Interim Resolution Professional. Petition admitted - moratorium declared.

Summary

Issues:
1. Jurisdiction of the Tribunal
2. Default in payment
3. Appointment of Interim Resolution Professional
4. Admission of the petition and declaration of moratorium

Jurisdiction of the Tribunal:
The petition filed by Punjab National Bank seeks to initiate the Corporate Insolvency Resolution Process against a specific company. The Corporate Debtor is stated to be incorporated in a particular location, establishing the jurisdiction of the Tribunal. The petition includes detailed information about the corporate debtor's business activities and financial dealings with the bank, leading to the initiation of insolvency proceedings.

Default in Payment:
The petition outlines the financial transactions between the corporate debtor and the financial creditor, highlighting defaults in payment and the subsequent declaration of the corporate debtor as a Non-Performing Asset. Various documents and records support the claim of default, including sanction letters, agreements, and notices. The respondent corporate debtor failed to respond, leading to a proceeding ex parte. The petition is found to be complete, meeting the requirements for admission under Section 7(5) of the Insolvency and Bankruptcy Code.

Appointment of Interim Resolution Professional:
The petition proposes Mr. Hemanshu Jetley as the Interim Resolution Professional, providing details of his credentials and compliance with regulatory requirements. The Tribunal appoints Mr. Jetley as the Interim Resolution Professional and directs him to carry out the necessary steps under the Insolvency and Bankruptcy Code. The appointment aims to facilitate the resolution process and ensure compliance with the legal framework.

Admission of the Petition and Declaration of Moratorium:
After thorough consideration of the petition, the Tribunal admits it based on the established default in payment and completeness of the application. The respondent's admission of the claim and inability to repay the debt further support the admission decision. Consequently, a moratorium is declared under Section 14 of the Code, imposing restrictions on legal actions against the corporate debtor and asset transactions. The Interim Resolution Professional is instructed to form a Committee of Creditors and provide regular progress reports to the Tribunal.

This detailed analysis of the judgment from the National Company Law Tribunal, Chandigarh Bench, covers the key issues of jurisdiction, default in payment, appointment of the Interim Resolution Professional, and the admission of the petition with the declaration of a moratorium. The judgment reflects a comprehensive legal assessment of the insolvency proceedings initiated by the financial creditor against the corporate debtor, ensuring adherence to the provisions of the Insolvency and Bankruptcy Code.