9911796707
TMI Blog2020 (9) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... No case has been made out by the Petitioner that the Respondent has become insolvent or has lost its substratum such that it cannot pay its debts or run its business. On the other hand, the Respondent is a leading renewable energy developer in Karnataka, and employs over 200 employees across its 21 power generation projects, with a total revenue of ₹ 177.50 Crore. Hence, it would defeat the purpose of the Code, if a going concern generating good revenue and having a huge number of employees is subjected to the rigours of corporate insolvency resolution process. In the facts of the instant case as brought on record and discussed above, especially that it has already received funds to be utilised for repaying its debts, we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Seven Thousand Only) as on 17.11.2019, which includes interest of ₹ 59,47,000/- (Rupees Fifty Nine Lakh Forty Seven Thousand only) calculated @16% p.a. on principal amount of ₹ 2,00,00,000/- (Rupees Two Crore only). 2. It is submitted by the Petitioner that on request of the Respondent, the Petitioner extended financial assistance by way of Inter Corporate Deposit No. 1 of ₹ 1,00,00,000/- (Rupees One Crore only) by Bank Transfer on 27.01.2016 at an interest rate of 16% per annum. Subsequently, in the month of October and November, 2017 the Respondent again requested the Petitioner for further financial assistance and the Petitioner Company provided 3 ICD's of ₹ 60,00,000/- (Rupees Sixty Lakh only) ₹ 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent has also received payments from the State DISCOMS towards the sale of energy. 6. The Counsel for the Respondent submits that the Respondent is a going concern and having received its dues from State DISCOM and assistance from L T Finance Limited, it is in a position to repay and settle the amounts as agreed between the parties. Copy of the Escrow Agent Agreement entered by the Respondent with L T Finance Limited is produced before us in this regard. 7. It is further submitted by the Counsel for the Respondent that it has settled the dues amounting to ₹ 36,81,38,388/- (Rupees Thirty Six Crore Eighty One Lakh Thirty Eight Thousand Three Hundred and Eighty Eight only) to over 24 Financial and Operational Creditors who ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to note that the Hon'ble Supreme Court in the case of Mobilox Innovations Private Limited v. Kirusa Software Private Limited 2018 (1) SCC 353 has inter alia held that the I B Code, 2016 is not intended to be a substitute to a recovery forum and cannot be used to jeopardise the financial health of an otherwise solvent company by pushing it into insolvency. It is also pertinent to mention that the Hon'ble Supreme Court in the case of K. Kishan v. Vijay Nirman Company Private Limited (CA) No.9597 of 2018 dated 23rd October, 2018, (147 CLA 112 (SC) clarified that the Petitioners cannot use IBC either prematurely or for extraneous considerations or as substitute for debt enforcement procedures. No case has been made out by the Petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scenario and restart their business. 14. In light of the above grim economic scenario and the facts of the instant case as brought on record and discussed above, especially that it has already received funds to be utilised for repaying its debts, we are of the considered view that the Respondent's plea that it be given some more time to repay the debt needs to be accepted, and the Respondent/Corporate Debtor be directed to settle the debt at the earliest in consultation with the Petitioner/Financial Creditor. The Ld. Counsel for the Petitioner has insisted that the Respondent may be directed to clear the debt within 10 days. However, considering the amount involved and the present economic scenario, despite the argument of the Petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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