9911796707
TMI Blog2017 (8) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... d Bankruptcy Code, 2016 (for brevity the 'Code'). The petitioner - 'Financial Creditor' become entitled to realize the default amount from the 'Corporate Debtor' having been duly transferred to it within the meaning of Section 5(7) of the Code. The debt was originally payable to Reliance Capital Finance Limited by virtue of an order dated 09.12.2016 passed by Hon'ble Bombay High Court (Annexure-I) duly sanctioning a scheme of arrangement between Reliance Capital Ltd. and Reliance Commercial Finance Limited under the provisions of Section 391-394 of the Companies Act, 1956. As a result of the approval of the scheme by Hon'ble Bombay High Court the loan amount stands transferred to and vested in the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- each. The loan was disbursed on 29.03.2014. The 'Financial Creditor' has submitted that the 'Corporate Debtor' failed to make payment of the EMIs as per the schedule of repayment and thus the 'Financial Creditor' was forced to recall the loan facility. As on 31.05.2017 a total sum of Rs. 2,01,26,510/- (Rupees Two Crores One Lakh Twenty Six Thousand Five Hundred Ten Only) is recoverable. A copy of the statement of working computation has been placed on record (Annexure-V). The 'Corporate Debtor' was required to make the payment of EMI starting from 05.05.2014 upto 05.04.2019 on the 5th day of every calendar month. The arrangements made by the 'Corporate Debtor' got dishonoured and thus it defaulted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o different for the month of July, August and October, 2016 and so on. 5. At the hearing, we asked learned counsel for the petitioner that disclosure has been made in para 2 part-V of the petition that the arbitration proceeding were pending and in face of arbitration proceeding how the Corporate Insolvency Resolution Process can be initiated. Learned counsel has stated that under Section 7 of the Code there is no bar to initiate Corporate Insolvency Resolution Process even if arbitration proceeding is pending. According to learned counsel such a bar exists in respect of claim made by Operational Creditor under Section 9 of the Code. In support of his view learned counsel has placed reliance on the observation made by the learned Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... porate Insolvency Resolution Process. The disclosure has been made in the letter dated 05.06.2017. Accordingly, in pursuance of Section 13(2) of the Code we direct that public announcement shall be immediately made by him with regard to admission of the application under Section 7 of the Code. We also declare moratorium for the purposes of Section 14. A necessary consequence of the moratorium flows from the provisions of Section 14(1) (a), (b), (c) & (d). Thus, the following prohibitions are imposed: "(a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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