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TMI Blog2017 (7) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... can admit a petition. Resultantly, the petition is hereby declared as Admitted. In the present case the consequence is that once the “Moratorium” is set in motion then the rights of the Petitioner shall get protected. As a consequence, the assets of the Corporate Financial Debtor must not be liquidated until the Corporate Insolvency Resolution Process is completed. The process of Moratorium shall be effective from today i.e. 29th May,2017 till the completion of the Corporate Insolvency Resolution Process or by any other order of this bench, if deem fit. - C.P. No. 1043/I&BP/NCLT/MB/MAH/2017 - - - Dated:- 29-5-2017 - MR. M.K. SHRAWAT, J. For The Petitioner : Vinu Jagtap, Adv. For The Respondent : Vinay Kumar ORDER 1. This Petition is submitted before NCLT on 25th May,2017 on Form No.1 in the capacity of Financial Creditor , as defined under the Insolvency Bankruptcy Code 2016 (hereinafter referred as The Code), with a prayer to initiate Corporate Insolvency Resolution Process. It is intimated that out of the debt sanctioned of ₹ 10 cr. by the Petitioner functioning as NBFC, only a sum of ₹ 2 crore was disbursed in favour of the Respondent i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fixing of tow reserve price for the secured asset and also for confirming the bid in favour of the alleged successful bidder for a low amount of ₹ 19.26 crores. The learned counsel appearing for the Respondent Bank seriously disputed the contention of the Applicants and after conclusion of arguments on both the sides, Mr. Rishabh Shah, the learned counsel appearing for the Applicants on instruction from his clients who was present in the open court finally submitted that the Applicants are ready and willing to redeem the property for an amount of ₹ 19.26 crores with interest from the date of auction within a period of six months, however left the fixation of period of redemption to the discretion of this Tribunal in order to protect the property. It appears the Respondent Bank also obtained Recovery Certificate against the Applicant Company from DRT-Pune and total dues payable by the Applicant under R. C. also appears to be around ₹ 20 crores or so. Since the auction purchaser has not deposited the entire sale consideration, the Applicant have got every right to redeem his property. 4) Under these circumstances, this Tribunal is inclined to grant stay of all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. According to the argument of the ld. AR representing the Petitioner the period is expiring tomorrow i.e. on 30th of May, 2017. A question has been raised by the Bench that in a situation when proceedings are already in progress before the respected DRT then why a parallel proceedings be initiated before this Tribunal i.e. NCLT?. To answer this query it is pleaded that there is no overstepping in the jurisdiction of the Hon'ble DRT due to the reason that as per the provisions of Section 14(1) (c) of l B Code the NCLT by an order can declare Moratorium, prohibiting any action to foreclose or recovery pertaining to a Corporate Debtor including any action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002). A statement at Bar has also been made that the Petitioner i.e. Indus Finance Ltd. is ready to induct more funds so that the dispute with J.M. Finance of the Corporate Debtor should be resolved and the company may be revived by saving from winding up proceedings. Ld. AR has also pleaded that as per the SARFAESI Act 2002 there was no provision for joining a dispute of recovery by unsecured creditor hence the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions as may be notified by the Central Government in consultation with any financial sector regulator. (4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process. 8.1) On due analysis of this section it is unambiguous that the Adjudicating Authority (NCLT) shall by an order declare Moratorium for prohibiting any action to recover or to enforce any security interest created by a Corporate Debtor in respect of his property, including any action under SARFAESI Act. Moreover, in my humble opinion, the life of the Insolvency Resolution Process under The Code is very limited, stated to be 180 days. This period is not eclipsing the provisions of SARFAESI Act for an unlimited period. The application of I B Code is for a limited period, but in no way in contradiction to the provisions of the SARFAESI Act. Under the said Act a creditor can demand for recovery of his debt but there is no provision in the said Act to involve other creditors. Therefore the import as also the significance is that all the other creditors should also be provided an equitable option to assume and/or undertake due le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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