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TMI Blog2017 (8) TMI 1476X X X X Extracts X X X X X X X X Extracts X X X X ..... iscussion, this Application is admitted under Section 10(4)(a) of the Code. - C.P. No. (I.B) 63/10/NCLT/AHM/2017 - - - Dated:- 21-8-2017 - Sri Bikki Raveendra Babu, Member (J). Shri Mohit Gupta, learned Advocate on behalf of M/s. A.R. Gupta Associates. Shri Biju Nair, learned Advocate for Respondent/ Financial Creditor. ORDER M/s. Dev Cotex Pvt.Ltd., ( Company for short) by its Board Resolution dated 21 st April, 2017 authorised Shri Bharatbhai Vrajalbhai Selani, Director of the Company to file this Application under the provisions of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the Code ) before this Authority. 2. This Application is filed by the Director of the Company in Form-6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as 'NPA' on 31.3.2016 in terms of guidelines issued by RBI. SBI also issued Possession Notice dated 06.3.2017. SBI filed Original Application No. 495 of 2016 before the Debt Recovery Tribunal-II, Ahmedabad, to direct the Company/ Corporate Debtor to pay ₹ 10,69,37,529.55 with interest at 12.80% p.a. with monthly rests from the date of application till realisation in the Working Capital Account together with further interest thereon at the rate of 1 % per annum with monthly rests from the date of application till realization from the hypothecated and mortgaged property, and for issuance of Recovery Certificate under Section 19 of The Recovery of Debts Due to the Banks Financial Institutions Act, 1993 ( RDDBFI Act ) 6. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebtor has not routed the sales transaction for the year 2016-2017 through the Financial Creditor and it shows that the Corporate Debtor was siphoning off the funds unlawfully. The Corporate Debtor did not submit any stock/ receivable statement to the Financial Creditor. Corporate Debtor with an intention to keep the Financial Creditor in darkness about the siphoning of funds by the Company did not upload the audited financial statements for the years 2015-2016 and 2016-2017 in the website of Ministry of Corporate Affairs. It is stated that the financial statements for the year 2016-2017 produced by the Corporate Debtor shows that the amounts of Sundry Debtors (Unsecured) are paid but not even a single pie has been paid to the Financial Cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but Corporate Debtor did not produce the financial statements for the years 2015-2016 and 2016-2017. A perusal of Annexure V shows the Balance Sheet as at 31 st March, 2017 is filed at Page No.69; Certificate by the Chartered Accountant in respect of Profit and Loss Account for the year ended 31 st March, 2017 is filed at Page No.70; Pages No. 71 and 72 relate to Notes Forming Part of the Financial Statement for the year ended 31.3.2016 and 31.3.2017. Page No. 75 contains the Audited Financial Report for the financial year 2014-2015 and Assessment Year 2015-2016; At Page No.90, Balance Sheet as at 31 st March, 2015 is filed; At Page No. 91, Profit and Loss Account for the year ended 31st March, 2015 is filed; at Pages No. 92 and 93, Note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the DRT is not a ground for not commencing the 'Insolvency Resolution Process', in view of the overriding effect given to Section 238 of the Code. 14. The pendency of other proceedings in respect of the debts due by the Corporate Debtor is not a ground not to admit this Application. 15. The object of the Code is, no doubt, to protect the genuine Corporate Debtors with a view to maximise their value of assets and find out a 'Resolution Plan' to revive the Companies. Incidentally, in the process of evolving a Resolution Plan, there is an opportunity for the Corporate Debtor to have a moratorium and thereby delay the other recovery proceedings. But, that is only for a prescribed period of 180 days or for a further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 21. This Adjudicating Authority hereby order moratorium under Section 13(1)(a) of the 1B Code prohibiting the following as referred to in Section 14 of the Code; (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) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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