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TMI Blog2019 (11) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... itiation of Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Purbanchal Trade and Industries Ltd., Corporate Debtor (CD) which is stated to have failed to pay the due & payable financial debt (along with interest) amounting to Rs. 2,78,51,288.00 (Rupees Two crore Seventy Eight lac Fifty One thousand Two hundred Eighty Eight only) as on 25th December, 2018. It has been stated that a notice dated 02-02-2019 to the CD to repay the said amount was not responded, and the amount was not repaid. It is further stated that the debt falls within the meaning of 'Financial Debt' in terms of Section 5(8) of the Code of 2016 and the CD has defaulted in the repayment in terms of Section 3(12) of the Code of 2016. Hence, the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as its main objects were not that of an NBFC, that it had not discharged various obligations such as filing of returns before the Registrar of Companies and that it was not actually carrying on the activities of NBFC etc., and hence was not eligible for any exclusion from the provisions of Section 7 of the Code of 2016. The decision of the Hon'ble Andhra Pradesh High Court in the case of Karvy Consultants Ltd. v Asstt. Commr. of Customs & C. Excise [WP No 1661 of 2005, dated 8-8-2005], was cited in support, to say that the certificate of registration of the RBI alone could not be relied upon without considering the conditions attached there to. 4. We have considered the above submissions. On an examination of the provisions contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'partnership firms' and 'individual' in a time bound manner. It is a self-contained Code which is exhaustive in nature when it comes to reorganization and insolvency resolution. However, an exception has been carved out while enacting the Code that the 'financial service providers' have been kept outside the purview of the Code. Being a consolidating legislation only those acts are permitted which are mentioned in the Code and it cannot be made applicable to 'financial service providers' including 'non-banking financial institutions' and MFI's banks, which have been kept outside the purview of the Code." 6. Keeping the above legal position in mind, it is seen that the objects contained in the Mem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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