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TMI Blog2019 (4) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... n is provided by the corporate debtor as also the mandatory requirements under Section 10 and form No. 6 are complete then it is to be admitted if otherwise not ineligible under Section Il. Admittedly, M/S. UIC Corporation Private Limited is liable to pay financial debts to its Financial Creditors including the Union Bank of India. No other objection has been raised by the Financial Creditors or by any other person. The materials on record clearly establish that financial debt is due from the Corporate Debtor to the Financial Creditors and there is occurrence of debt by the Corporate Debtor in repayment of financial debt - this Adjudicating Authority is of the considered view that this is a fit case to be admitted for triggering Corporate Insolvency Resolution Process and accordingly this petition is admitted under Section IO(4)(a) of the Code. The Interim Insolvency Resolution Professional is hereby directed to cause a public announcement of the initiation of 'Corporate Insolvency Resolution Process' and call for submission of claims under Section 13(I)(b) read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The applicant also stated that the company is having contingent liabilities to the extent of Rs. as also reflected in Annexure - 21 placed at page No. 205 of the application. It is further stated that Department of Value Added Tax, Dadra Nagar Haveli issued a Notice under Section 13(2) of the SARFAESI Act, 2002 for non-submission of declaration forms against the claim of inter-state sales made to registered dealers. 8. That the petitioner while filing the instant application has relied upon the following documents to substantiate the statements made in the petition/application viz . (a) Board resolution authorising the person submitting the application on behalf of the corporate applicant; (b) Name and address of the financial creditors; (c) Name and address of the operational creditors; (d) ledger account of the financial creditors evidencing the liabilities; (e) ledger account of the operational creditors evidencing the liabilities; (f) particulars of security held, date of its creation, its estimated value as per the creditor; (g) copy of ROC record confirming the charges of financial creditors; (h) details of statutory liabilities; (i) copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 30.09.2014. That the bank has detected some fraud in the account of the corporate debtor company and has reported the same to RBI for the purpose of filing a complaint before CBI against the company and its directors. 14. That in view of the above, this Tribunal, vide order dated 22.062018, directed Union Bank of India to furnish detailed particulars about the directions, if any, made by RBI. 15. That Union Bank of India in compliance to order dated 22.06.2018, filed reply dated 28.08.2018 submitted therewith copy of complaint dated 26.07.2018 filled by it before the Superintendent of Police, Central Bureau of Investigation, Bandra, Mumbai. NO further status/progress report is filed by the Union Bank of India. 16. That corporate debtor/corporate applicant filed reply in affidavit on 24.09.2018 inter alia stating that the complaint filed before the CBI has no bearing in the application filed under Section 10 of the 1B Code and the application has been filed in accordance with the provisions of the Code, Rules and Regulations. 17. That State Bank of India being one of the major secured creditors of the corporate applicant filed reply in affidavit dated 18.07.2018 pleadi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a notice from the adjudicating authority. 21. In an application under Section 10, the financial Creditor or operational Creditor , may dispute that there is no default or that debt is not due and is not payable in law or in fact. They may also oppose admission on the ground that the Corporate Applicant is not eligible to make application in view of ineligibility under Section 11 of the I B Code. The Adjudicating Authority on hearing the parties and on perusal of record, if satisfied that there is a debt and default has occurred and the corporate applicant is not ineligible under Section Il, the adjudicating authority has no option but to admit the application, unless it is incomplete, in which case the corporate applicant is to be granted time to rectify the defects. 22. Section 10 does not empower the adjudicating authority to go beyond the records as prescribed under section (10 and the information as required to be submitted in Form 6 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority) Rules, 2016 subject to ineligibility prescribed under Section 11. If all information are provided by an applicant as required under Section 10 and Form 6 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny action has been taken by a Financial Creditor' under section 13(4) of the SARFAESI Act, 2002 against the Corporate Debtor or a suit is pending against Corporate Debtor under section 19 of DRT Act, 1993 before a Debt Recovery Tribunal or appeal pending before the Debt Recovery Appellate Tribunal cannot be a ground to reject an application under section 10, if the application is complete. 26. Any proceeding under section 13(4) of the SARFAESI Act, 2002 or suit under section 19 of the DRT Act, 1993 pending before Debt Recovery Tribunal or appeal pending before Debt Recovery Appellate Tribunal cannot proceed in view of the order of moratorium as may be passed. 22. By following the above stated judicial precedent of the NCLAT, it is well settled that pendency of proceedings and initiation of action under SARFAESI Act cannot be an impediment or bar to initiate the Corporate Insolvency Resolution Process under Section 7 of the Code nor it can be a ground to reject the Resolution petition. 23. On perusal of the petition goes to show that it is complete in all respects. Further, admittedly, M/S. UIC Corporation Private Limited is liable to pay financial debts to its Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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