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TMI Blog2017 (7) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... per the terms of the agreement, the interest was to commence in case, the amount is not repaid on or before 31.03.2016. This was not a business transaction, but a case of simple loan. So, the interest can be calculated for the purpose of preparing the resolution plan at simple rate of 12% per annum on the defaulted amount on the basis of the terms of the loan agreement dated 03.03.2015. If the petitioner intends to claim the interest at the higher rate or compounded interest, he may have the remedy for such a relief before the Civil Court. In view of the above, the default having occurred and the application filed by the Financial Creditor in Form No. 1 prescribed under the rules being complete in all respects, the petition deserves to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. It is contended that the respondent also executed the promissory note through its duly authorised representative Mr. T. Rajshekar, Director of the Corporate Debtor. Anyhow, the promissory note being unstamped is inadmissible and thus has to be ignored out of consideration. 3. The petitioner, however, also relied upon letter dated 20.01.2017 sent by the respondent company through its Managing Director, Mr. T. Rajshekar admitting the balance outstanding towards the loan to be ₹ 10,00,000/- along with interest, for which the respondent made a request to repay the same within a couple of months. The amount was not paid despite a reminder dated 12.04.2017 Annexure A-10 sent by the petitioner. The amount in default of the 'financi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Directors of the respondent-company dated 30.05.2017. The Board vide this resolution authorised Mr. T. Rajshekar to appear before the Tribunals and any other authority in respect of the matter filed by the petitioner-Financial Creditor. The power of attorney in favour of the learned counsel has been issued by Mr. T. Rajshekar aforesaid. 7. On hearing learned counsel for the petitioner on 30.06.2017, following defects were noticed: i) The resolution dated 12.05.2017 passed by the petitioner in favour of Mr. Y. Srinivas has not been attached; ii) Copy of letter dated 08.12.2016 sent to the respondent in the nature of reminder of the outstanding amount is not filed: and iii) Copy of the ledger account of the petitioner-Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents in support of the petitioner's contention. 11. It was already observed in the order dated 30.06.2017 that the written communication of the proposed Interim Resolution Professional in Form No. 2 is proper. 12. I have heard the learned counsel for the parties and perused the record carefully with their able assistance. 13. Learned counsel for the respondent-corporate debtor has not disputed the factum of 'Corporate Debtor' being in default, as per the admission made in the letter dated 20.01.2017. The respondent-corporate debtor has not even filed any objection/response to the instant petition, despite opportunity having been granted. 14. Section 7 of the Code deals with the initiation of Corporate Insolvency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation filed by the Financial Creditor in Form No. 1 prescribed under the rules being complete in all respects, the petition deserves to be admitted. 16. The petition is, therefore, admitted and the moratorium is ordered by issuing the following directions: i) That the Bench hereby prohibits 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; transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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