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TMI Blog2017 (8) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... ranting refusal to admit the petition. Therefore, we are inclined to admit the petition. As a sequel to the above discussion, the petition is admitted. As a necessary consequence, we declare a moratorium for the purposes referred to in Section 14 of the Code and direct the Interim Resolution Professional to make a public announcement of the initiation of corporate Insolvency Resolution Process and call for the submission of claims under Section 14 of the Code. The moratorium as contemplated in Section 14 shall come in operation with the exceptions as enumerated in Section 14(2) and (3). - IB-131 (PB)/2017 - - - Dated:- 1-8-2017 - MR. M.M. KUMAR AND MS. DEEPA KRISHAN, JJ. For The Petitioner/Applicant : Shri Arvind Kumar, Advocate Ms. Henna George, Advocate For J. M. Financial ARC : Shri Manoj Kumar Gupta, Sr. VP Legal Shri Rajive R. Raj, Advocate For Axis Bank Ltd. : Shri Jogendra Singh, Legal Manager JUDGMENT Ms. Deepa Krishan, Member (Technical) The instant petition has been preferred under Section 10 of the Insolvency and Bankruptcy Code, (for brevity the Code ) with a prayer for initiating Insolvency Resolution Process against the Applicant C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceivables as on 20.05.2017 has been attached as Annexure H with the application. 6. During the course of hearing, the Learned Counsel for the applicant company directed our attention to the copy of Form-A filed by the Corporate Applicant before BIFR on 10th October, 2011 that has been placed as Annexure J. Briefly, it is stated in this application that erratic demand, uncertain raw material prices, foreign currency fluctuation and change in Government Policy had affected growth and profitability of the company negatively and had caused losses to the tune of ₹ 563.49 Lakhs as on 30th June, 2011. The said letter also has a reference to the Corporate Applicant's earlier letter dated 09th November, 2009 with respect to erosion of 50 per cent of peak net worth pursuant to the provisions of Section 23 (i) of the Sick Industrial Companies (Special Provisions) Act, 1985. 6.1 A copy of the Order dated 18.07.2012 passed by BIFR, whereby, the Corporate Applicant was declared sick has also been filed along with the application as Annexure K. 6.2 A copy of notice dated 18.12.2012 issued by UCO Bank under Section 13(2) of SARFAESI Act seeking payment of a sum of ₹ 6,68, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta Vihar, New Delhi-110076, registration no. IBBI/IPA-001/IP-00175/2017-18/10344. The written communication by proposed IRP in Form-2 under Rule 9 of the above referred Rule has also been attached. 10. The Corporate Applicant has filed an affidavit on 11.07.2007 stating that a copy of the insolvency petition along with this Tribunal's Order dated 02.06.2017 has been served on the Financial Creditors, namely, M/s Axis Bank and M/s JM Financial Asset Reconstruction Company Pvt. Ltd. 11. An affidavit has been filed by the Corporate Applicant to place on record a copy of the original application being O.A. No. 385/2017 filed by M/s Axis Bank before Debt Recovery Tribunal (DRT), Delhi against the Corporate Applicant Company. It is stated that the said O.A. is pending before the DRT on date. 12. The legal Manager of Axis Bank appeared before this Tribunal on 19.07.2017 and stated that they do not oppose the instant application. 13. A short reply has been filed on behalf of Financial Creditor M/s JM Financial Asset Reconstruction Company Pvt. Ltd. and this Financial Creditor was also represented by Learned Counsel before the Tribunal on 19.07.2017. In this reply, it is sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merated in section 14 of the Insolvency and Bankruptcy Code and hence, Interim Insolvency Resolution Professional may be directed to conclude the resolution within a period of 100 days. 17. We have heard learned counsel for the parties and have perused the paper books with their able assistance. 18. On. 1.12.2016, the provisions of Insolvency Bankruptcy Code, 2016 have been notified by the Central Government for the objects as can be gleaned from the Statement of Objects and Reasons as given below: An act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith of incidental thereto . 19. A perusal of the above object discloses that the provisions of IBC, 2016 have predominantly been brought into force for the re-organisation and insol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... torium, with a view to deny the recovery of bonafide and lawful debt owed to its creditors, including financial and operational. 21. The above paragraphs give the broad guidelines, as enunciated to the initiation of the Corporate Insolvency Resolution Process (CIRP) by the Corporate Debtor itself as in the instant case where the petition has been filed by the Corporate Debtor itself. 22. The details of Financial Creditors along with the Charge created on company's assets and corporate and other guarantees given by the Corporate Applicant have been filed along with the instant application as follows: - S. No. Bank Name Address Type of Loan O/S amount as on NPA Date (Rs In Lakh) Demand as per 13(2) notice/statement/recall notice (Rs. In Lakhs) Remarks First Pari Passu Charge on the Company's Assets Second Pari passu charge Corporate Guara ntee Guarantors 1 Axis Bank Axis Bank, 2nd Floor, 148 Barakhamba Raod New Delhi 110001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... All Current assets (both present and future) Fixed Assets Spentex Industries Limited Sh. Mukund Choudhary Sh. Kapil Choudhary CCo/s 580.43 As above As above As above As above 23. It is seen that as per the copy of provisional financial statement of the Corporate Applicant Company for the current financial year as on 20th May, 2017, a sum of ₹ 65,26,75,440/- is shown as trade payable as per Annexure Q . S. No. Particulars Note No. As on May 20, 2017 Equity and Liabilities 3 Non-Current Liabilities ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) Inventories 14 2,887,387 (c) Trade receivables 15 252 (d) Cash and Cash equivalents 16 2,026,393 (e) Short-term loans and advances 17 222,138,755 (f) Other current assets 18 - 227,052,787 Total 641,765,171 0 24. Learned Counsel for the Applicant Corporate Debtor stated before us that the land assets of the company have been valued at historical values. As per the Annual Report of 2015-2016 as on 1st April, 2016, the total block of fixed assets comes to ₹ 38,25,65,198/-. 25. As per the Learned Counsel, the Applicant Company is running and as per the provisional pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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