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TMI Blog2020 (9) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of itself (M/s. Alucast Auto Parts Limited), on the ground that it is suffering huge losses in the last few Financial Years and the Company is not possessing any assets. 2. Brief facts of the case, as mentioned in the Company Petition, which are relevant to the issue in question, are as follows: (1) M/s. Alucast Auto Parts Limited (herein after referred to as Petitioner/Corporate Applicant/Company) is a Public Limited Company was incorporated on 09th May 1995, having CIN: U28920KA1995PLC017793 and the registered office is situated at R.S. No. 390/3A, GP No. 384/A, Khanapur Road, Peeranwadi, Belgaum 590 014. Its Nominal Share Capital is Rs. 28,00,00,000/- (Rupees Twenty Eight Crores Only) divided 1,60,00,000 equity shares of Rs. 10/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank sanctioned for Rs. 31,00,00,000/- (Rupees Thirty One Crores Only) on 5th April, 2016. The Company made its best efforts to pay the OTS. But due to demonetisation and sluggish market conditions, it could raise only Rs. 8,56,00,000/- (Rupees Eight Crore Fifty Six Lakhs Only) by disposing of the Promoters personal properties as well as some of the non-crore assets of the Petitioner. The Applicant has approached the SBI for an extension of 12 months to fulfil OTS payments but it was not granted by it. Subsequently, the SBI sent a notice again on 30th May, 2017. The Company filed its objections to said notice by filing Reply dated 27th July, 2017. However, the SBI vide its letter dated 9th August, 2017 stated that the objections raised did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any Petition, as briefly stated supra, has further submitted that the list of Financial Creditors as available in the books of Company, is enclosed to the instant Petition as Annexure 1(1) at page No. 17, which contains the following details: (Amount in lacs) Sl. No. Name Total Debts Raised (Principal Amount) Amount is Default 1. State Bank of India Name of the Loan 6150.00 4281.30 Cash Credit 1530.00 WCDL 75.00 Term Loan I 2700.00 Term Loan II 300.00 Corporate Loan 575.00 Bank Guarantee 200.00 Letter of Credit 300.00 2. Edelweiss Asset RCI Te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated supra, the Company prima facie proved that it is insolvent Company having so many Financial Creditors and operational Creditors, possessing hardly any assets. BIFR in its proceedings dated 30.09.2013 in Case No. 62 of 2013 filed by the Company, has inter-alia recorded that the Company's net worth was fully eroded due to accumulated, which stood at Rs. 5435.73 lakhs. When the Company loses its net worth and its Creditors are resorting to various legal proceedings, the appropriate remedy would be to invoke provision of Code so to put quietus to the issue in accordance with procedure prescribed under the provisions Code 6. In terms of Section 10 of the Code, a Corporate Applicant can file an application if Corporate Debtor has commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board or Indian Institute of Insolvency Professionals of ICAI. The Shareholders of Applicant Company, in their Extraordinary General Meeting, held on 30.09.2019 passed a Special Resolution by approving to file an Application, U/s 10 of Code by authorising Mr. Sanjay G. Bichu, Managing Director of the Company to take necessary action in the that regard. Accordingly, the instant Application/Petition is filed by seeking to initiate CIRP respect of the Company. 8. In view of the above facts and circumstances of the case, and the settled position of law on the issue, and by exercising powers conferred on this Adjudicating Authority, U/s 10(4)(a) of the Code, We, do hereby admitted C.P.(IB) No. 121/BB/2020 by initiating Corporate Insolvency Res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate Debtor; e) The supply of essential goods or services to the Corporate Debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period; f) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. g) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process; h) The IRP should follow all extant provisions of IBC, 2016 and the rules including fees rules as framed by IBBI. The IRP is hereby directed to file his report in the Tribunal from time to time. i) However, this moratorium would not apply to cases if a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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