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TMI Blog2019 (10) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... plication has been filed on the proforma prescribed under Rule 4 (2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, read with Section 7, of the Code - We are satisfied that a default amounting to lacs of rupees has occurred. As per requirement of Section 4 of the Code if default amount is one lac or more then the CIR Process would be issued. The application under sub-section 2 of Section 7 is complete; and no disciplinary proceedings are pending against the proposed Interim Resolution Professional. Petition admitted - moratorium declared. X X X X Extracts X X X X X X X X Extracts X X X X ..... ails of the securities held by, or charge created for the benefit of 'financial creditor'-Punjab National Bank which fulfils the requirements of Sections 77 & 78 of Companies Act, 2013, have been given in Part V of the application. 6. The Financial Creditor has also placed on record a list of all the financial facilities granted by the Financial Creditor to the Corporate Debtor along with the copies of the said Financial Contracts. 7. It is submitted by the Petitioner-Financial Creditor that the account of the Corporate Debtor was classified as NPA by the Petitioner-Financial Creditor on 30.09.2017. Further the bank filed O.A. No. 824/2018 before the Debts Recovery Tribunal, Delhi and the same is pending consideration. 8. The precise cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion professional has also been specified. 12. Having heard the learned counsel for the petitioner it would first be necessary to examine the provisions of Section 7 (2) and Section 7 (5) of IBC which read as under:- "Initiation of corporate insolvency resolution process by financial creditor. 7(1)…………………. 7 (2) The financial creditor shall make an application under sub-section (1) in such form and manner and accompanied with such fee as maybe prescribed. 7(3) ………………… 7(4) ………………… 7(5) Where the Adjudicating Authority is satisfied that- (a) a default has occurred and the application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days as clarified by Explanation to Regulation 6 (1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 16. We also declare moratorium in terms of Section 14 of the Code. A necessary consequence of the moratorium flows from the provisions of Section 14 (1) (a), (b), (c) & (d) and thus the following prohibitions are imposed which must be followed by all and sundry: "(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 ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is further made clear that all the personnel connected with the Corporate Debtor, erstwhile directors, promoters or any other person associated with the Management of the Corporate Debtor are under legal obligation under Section 19 of the Code to extend every assistance and cooperation to the Interim Resolution Professional as maybe required by him in managing the affairs of the Corporate Debtor. In case there is any violation committed by the ex-management or any tainted/illegal transaction by ex-directors or anyone else the Interim Resolution Professional/Resolution Professional would be at liberty to make appropriate application to this Tribunal with a prayer for passing an appropriate order. The Interim Resolution Professional/Resoluti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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