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2024 (9) TMI 322 - Tri - Insolvency and BankruptcySeeking to initiate Corporate Insolvency Resolution Process (CIRP) against Corporate Debtor - present petition is barred by section 10A of IBC or not - Existence of debt and default or not - HELD THAT - Upon perusal of records, this Bench is of the considered opinion that there is no dispute regarding the fact that the Corporate Debtor owes debt to the Financial Creditor and has defaulted in the payment of Financial debt of more than Rs. 1 Crore (as per Section 4 of the IBC). Hence, the debt due and default is established. From evidence and material on record, it is also held that the application is filed by properly authorized person. Therefore, this Company Petition is liable to be admitted. The application made by the Financial Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is in excess of minimum amount stipulated under section 4(1) of the IBC. Therefore, the debt and default stands established and there is no reason to deny the admission of the Petition. In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor. Petition admitted - moratorium declared.
Issues Involved:
1. Jurisdiction and Petition Filing. 2. Default and Debt Details. 3. Corporate Guarantee Validity. 4. Limitation and Section 10A Applicability. 5. Invocation of Guarantee. 6. Completeness of Petition and Documentation. 7. Admission of Petition and Initiation of CIRP. 8. Appointment of Interim Resolution Professional (IRP). 9. Moratorium under Section 14 of IBC. 10. Public Announcement and Compliance. Issue-wise Detailed Analysis: 1. Jurisdiction and Petition Filing: The Company Petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Central Bank of India (Financial Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against Superfine Profile and Extrusions Private Limited (Corporate Debtor). The Corporate Debtor is a private company registered in Maharashtra, giving this Bench jurisdiction to deal with the petition. 2. Default and Debt Details: The petition was filed on 29.07.2023 claiming a secured loan of INR 66,21,05,008/- based on a Corporate Guarantee Agreement dated 22.08.2015 and 18.11.2016. The default date was 06.03.2023. The Financial Creditor disbursed the amount in various facilities including Cash Credit, Term Loan, FITL, and Cash Credit Adhoc. 3. Corporate Guarantee Validity: The Corporate Guarantee Deed was executed on 22.08.2015 and 18.11.2016 to secure credit facilities granted to the principal borrower, Superfine Metals Private Limited. The Corporate Debtor provided security interests over movable and immovable property through Hypothecation and Mortgage. 4. Limitation and Section 10A Applicability: The Respondent argued that the petition was barred by Section 10A of IBC, as the default date was 29.11.2020. However, the Bench held that the petition was within the limitation period since the demand notice was sent on 06.03.2023, and the default by the guarantor occurs when the demand is made and not paid. 5. Invocation of Guarantee: The Respondent contended that the guarantee was not rightly invoked as the demand letter was issued only in relation to the Financial Creditor's debt and not on behalf of the consortium. The Bench noted that the guarantee was in favor of each consortium member, including the Financial Creditor, making the invocation valid. 6. Completeness of Petition and Documentation: The Respondent claimed that essential documents like the Loan Agreement and Sanction letter were not provided, making the petition incomplete. However, the Bench found the petition complete in all respects as required by law, showing the Corporate Debtor's default. 7. Admission of Petition and Initiation of CIRP: The Bench concluded that there was no dispute regarding the debt owed by the Corporate Debtor, and the default was established. The application was filed by a properly authorized person, leading to the admission of the petition and initiation of CIRP. 8. Appointment of Interim Resolution Professional (IRP): Mr. Jitendra Ramesh Palande was proposed and appointed as the Interim Resolution Professional (IRP). He filed his written communication and Certificate of Registration as required under the rules. 9. Moratorium under Section 14 of IBC: A moratorium was declared, prohibiting the institution or continuation of suits, transferring or disposing of assets, enforcing security interests, and recovering property. The supply of essential goods or services to the Corporate Debtor shall not be interrupted during the moratorium. 10. Public Announcement and Compliance: A public announcement of the CIRP was ordered to be made immediately. The Financial Creditor was directed to deposit INR 5,00,000 with the IRP for public notice expenses. The Registry was instructed to communicate the order to relevant parties and update the Corporate Debtor's Master Data. Conclusion: The petition was admitted, and the CIRP was initiated against the Corporate Debtor. The moratorium was imposed, and the IRP was appointed to manage the process. The Financial Creditor and Corporate Debtor were directed to comply with the necessary procedures and provide required documents.
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