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TMI Blog2020 (6) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... there is hardly any possibility of any Resolution plan likely to be received during first stage of CIRP, if initiated, and thus it would be just and proper to put the Corporate Applicant Debtor under the liquidation process, in order to liquidate the Company, rather than to put it in CIRP in the first instance. M/s. GNB Technologies India Private Limited, Petitioner/Corporate Applicant to be liquidated in the manner as laid down in Chapter III (Liquidation Process) of Part II of the Code - Post the case on 6-12-2019 for report of the Liquidator. - C.P. (IB) NO. 167/BB/2019 - - - Dated:- 8-11-2019 - Rajeswara Rao Vittanala, Judicial Member And Ashutosh Chandra, Technical Member For the Petitioner : Ms. Mehak Suri ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abovementioned manufacturing facility. GNB Technologies was doing well until the financial year 2010-2011, when the problems started on account of increased competition in market, high labour cost, numerous amount of warranty claims, etc. The financial position of GNB Technologies deteriorated further when the Company's competitors started selling similar batteries at much lower price, when strained the revenue of the Company to its bottom. At the same time, the cost of its operations remained the same and lead to further increase in losses. The losses continued to occur with no parallel increase in revenue, therefore, the management had to close down the manufacturing operations of the Company. (3) GNB Technologies has settled claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, USA (an Operational Creditor of the Petitioner Corporate Debtor), sent a letter to the Corporate Debtor on 7th October 2019, demanding payment of INR 42,89,04,336 (i.e. approx. INR 42.89 Crores) owed by the Petitioner Corporate Debtor. The Corporate Debtor expressed its inability to pay such amounts to Exide Technologies Industrial Energy, USA vide letter dated 15th October 2019. The total amount due from the Petitioner Corporate Debtor on account of Operational debts is INR 49,97,96,558/- (i.e. approx. INR 49.98 Crores), as stated in detail in the list of Operational Creditors specifying their names, address and amount in default along with details pertaining to date when such debts became payable. 3. Heard Ms. Mehak Suri, learned Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany is ₹ 1,00,00,000 (Rupees One Crore) divided into 10,00,000 (Ten Lakhs) equity shares of ₹ 10/- (Rupees Ten) each, and Paid-up Share Capital is ₹ 8,01,84,180 (Rupees Eight Crores One Lakh Eighty Four Thousand One Hundred and Eighty only) divided into shares of ₹ 10/- (Rupees Ten) each. And out of which, Exide Holding Asia Pte Ltd., Sigapore, alone hold 80,18,397 share for total amount of ₹ 801,83,970/- 6. As per the Independent Auditor's report dated 25-10-2017, namely Shri T. Shrinivasa Rao Co., Chartered Accountants, has interalia stated that the Company's net worth is eroded (Net worth as at 31st March 2017 is (-) ₹ 38,59,81,079.37), which cast significant doubt on the ability of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... worth of ₹ 503,859,674 on March 31, 2018. During FY 2017-18 the Company has incurred net loss of ₹ 111,380,969/-, which cast significant doubt on the ability of the Company to continue as a going concern. The Company has suspended its operations more than 5 years ago and the management has no plan to restart the production in near future. 7. The holding Company M/s. Exide Technologies has issued a demand notice dated 7-10-2019, to the Petitioner/Corporate Debtor, by inter stating that the Exide Technologies was responsible for supplying the raw materials to the GNB Technologies (India) Private Limited, and thus GNB India owes an amount of ₹ 42,89,04,336/- (i.e. approx. INR 42.89 Crores) to Exide Technologies on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm-2 dated 14-3-2019, by inter alia affirming that he is eligible to be appointed as a liquidator in respect of the Corporate Debtor herein and that there are no disciplinary proceedings pending against him with the Board or Indian Institute of Insolvency Professional of ICAI; he is currently serving as an Interim Resolution Professional/Resolution Professional/Liquidator in NIL proceedings. He can be appointed as Liquidator instead of IRP, in order to liquidate the Corporate Applicant under section 33 of the Code. 9. In view of the facts and circumstances of the case, the Adjudicating Authority, by exercising its powers conferred under section 10 read with section 33 of the IBC, 2016 and Rule 11 of NCLT Rules, 2016, the Company petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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