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2017 (9) TMI 1387 - Tri - Insolvency and BankruptcyCorporate insolvency procedure - Insolvency and Bankruptcy Code, 2016 - proof of eligible debt - Held that - Petitioner has disclosed all the details required by Section 10 of the Code read with Rule-7 of Rules. The particulars of the corporate applicant and those of the financial debt have been disclosed in all material particulars. The name of the Interim Resolution Professional has also been proposed. The record of the financial debt as per the Books of the Corporate-Applicant; and record of the Operational Debtors ; certificate of eligibility of the Interim Resolution Professional, Books of Account showing default; copies of the audited financial statement for the Financial Year ending 31.03.2016 and 31.03.2017 all have been placed on record. A list of assets and liabilities as on 31.07.2017 has also been disclosed. It has been submitted that the applicant company is in dire need of a resolution plan in the interest of all the stakeholders. The present application has been filed in the requisite form-6 containing the required particulars in terms of sub-section (2) of section 10 of the Code. The petitioner satisfies all the statutory requirements. Therefore, we are inclined to admit the application. In view of the above, we are satisfied that the present application is complete and that the applicant corporate debtor has committed a default. Therefore, as the application is complete the present application is admitted under section 10(4)(a) of the Code. The corporate insolvency resolution process shall commence from the date of this order under sub-section (5) of section 10 of the Code. Moratorium in terms of section 14 of the Code is being issued respectively.
Issues Involved:
1. Jurisdiction and admissibility of the application. 2. Compliance with Section 10 of the Insolvency and Bankruptcy Code, 2016. 3. Financial status and creditor details of the applicant company. 4. Appointment of Interim Resolution Professional (IRP). 5. Issuance of moratorium under Section 14 of the Code. 6. Directions to the IRP and other procedural orders. Detailed Analysis: 1. Jurisdiction and Admissibility of the Application: The application was filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rule, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) concerning the applicant company. The Tribunal confirmed its jurisdiction as the registered office of the applicant company is located in New Delhi. 2. Compliance with Section 10 of the Insolvency and Bankruptcy Code, 2016: The applicant company, Ang Industries Ltd., provided a true copy of the Board resolution dated 2-8-2017 authorizing the filing of the insolvency application. The company submitted copies of audited financial statements for the last two financial years (2015-16 and 2016-17) and provisional financial statements for the current financial year up to 31-7-2017. The details of assets and liabilities, including the list of financial and operational creditors, were also furnished. 3. Financial Status and Creditor Details of the Applicant Company: The applicant company has several financial creditors with a total outstanding principal amount of INR 12,320.70 Lakhs and accrued interest of INR 2,60,87,000. The company also has 997 operational creditors with a total outstanding amount of INR 55,15,60,522. The provisional financial statements as of 31-7-2017 detail the current liabilities and assets, including trade payables, short-term borrowings, and fixed assets. 4. Appointment of Interim Resolution Professional (IRP): The applicant proposed Mr. ILAM CHAND KAMBOJ as the Interim Resolution Professional (IRP), and a written communication in Form-2 from the Insolvency Professional was obtained. The Tribunal verified the eligibility and appointment of the IRP as required under Rule 9 of the Rules. 5. Issuance of Moratorium under Section 14 of the Code: The Tribunal issued a moratorium prohibiting: - Institution or continuation of suits or proceedings against the corporate debtor. - Transferring, encumbering, alienating, or disposing of any assets or legal rights of the corporate debtor. - Actions to foreclose, recover, or enforce any security interest. - Recovery of property occupied by or in possession of the corporate debtor. 6. Directions to the IRP and Other Procedural Orders: The Tribunal directed that the supply of essential goods or services to the corporate debtor should not be terminated during the moratorium period. The IRP was instructed to take statutory steps as envisaged under Sections 15, 17, and 18 of the Code and submit a report by 28.09.2017. The moratorium order will remain effective until the completion of the CIRP. Conclusion: The Tribunal found the application complete and admitted it under Section 10(4)(a) of the Code, initiating the Corporate Insolvency Resolution Process from the date of the order. The IRP, Mr. ILAM CHAND KAMBOJ, was appointed, and a moratorium was issued in terms of Section 14 of the Code. The IRP is directed to submit a report within the stipulated time.
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