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2022 (11) TMI 865 - Tri - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - existence of debt and dispute or not - HELD THAT - A perusal of the record placed by the Financial Creditor discloses that it has provided various Term Loans including Short Term Loans, Equipment Loans, Demand Loan, ECB Loan and working capital facilities, both fund based and non-fund based to the Corporate Debtor from time to time and that an amount of Rs. 242,33,00,269/- became due and payable as on 30.09.2022 and the account of the Corporate Debtor was classified as NPA on 30.04.2022. Despite opportunity the corporate debtor failed to place any record disclosing that there is no debt or default as claimed by the applicant. Thus, the record placed and the averments made in the company petition by the Applicant remain un rebutted. There are due compliance of the requirements in terms of Section 7(3) of IB Code by the financial creditor, and this Adjudicating Authority in terms of its power under section 7 (4) ascertained the existence of debt and default if any as alleged on the part of the corporate debtor from the record placed by the financial creditor under sub section (3) of Section 7 of IB Code, and is fully satisfied that present application under subsection 2 of Section 7 of IB Code is complete in all aspects and that the re are no disciplinary proceedings pending against the proposed resolution professional, hence the instant Application is admitted. Application admitted - moratorium declared.
Issues Involved:
1. Admission of the application under Section 7 of the Insolvency and Bankruptcy Code, 2016. 2. Appointment of Interim Resolution Professional (IRP). 3. Declaration of moratorium. 4. Compliance with procedural requirements and timelines. Issue-wise Detailed Analysis: 1. Admission of the Application under Section 7 of the Insolvency and Bankruptcy Code, 2016: The application was filed by the Financial Creditor (State Bank of India) against the Corporate Debtor (M/s. Gayatri Projects Limited) seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor had provided various term loans and working capital facilities to the Corporate Debtor, which defaulted on repayments amounting to Rs. 242,33,00,269/- as on 30.09.2022. The account was classified as Non-Performing Asset (NPA) on 30.04.2022. Despite being given opportunities, the Corporate Debtor did not contest the claims, leading to an ex-parte decision. The Tribunal found the application complete and admitted it under Section 7 of the IB Code, 2016. 2. Appointment of Interim Resolution Professional (IRP): The Financial Creditor proposed Mr. Sai Ramesh Kanuparthi as the IRP, who consented in Form-2. The Tribunal appointed him as the IRP, with Registration No. IBBI/IPA-001/IPP00910/2017-18/11510, and directed him to take charge of the Corporate Debtor's management immediately. The IRP was also instructed to file Authorization for Assignment within three days and make a public announcement as prescribed under Section 15 of the IB Code, 2016. 3. Declaration of Moratorium: The Tribunal declared a moratorium effective from the date of the order until the completion of the CIRP. The moratorium prohibits: i. The institution or continuation of suits or proceedings against the Corporate Debtor. ii. Transferring, encumbering, or disposing of any assets of the Corporate Debtor. iii. Actions to foreclose, recover, or enforce any security interest. iv. Recovery of any property by an owner or lessor. v. Suspension or termination of licenses, permits, or similar grants due to insolvency, provided there is no default in payment of current dues during the moratorium period. 4. Compliance with Procedural Requirements and Timelines: The Tribunal ensured compliance with Section 7(3) of the IB Code by the Financial Creditor and confirmed the existence of debt and default. The IRP was directed to comply with Sections 13(2), 15, 17, and 18 of the IB Code. The Financial Creditor was instructed to pay Rs. 2,00,000/- towards the IRP's advance fee and CIRP expenses. The Tribunal also directed the Registry to send copies of the order to the IRP, Financial Creditor, Corporate Debtor, and ROC, Hyderabad, for updating the Corporate Debtor's status on the MCA website. Conclusion: The Tribunal admitted the application, initiated the CIRP, appointed the IRP, declared a moratorium, and ensured procedural compliance, thereby facilitating the resolution process as per the Insolvency and Bankruptcy Code, 2016.
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