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TMI Blog2019 (5) TMI 1831X X X X Extracts X X X X X X X X Extracts X X X X ..... binding upon the corporate debtor. Respondent has committed clear default in not paying the amount and interest as per the decree. Once there is a debt and default and the application is complete, the Adjudicating Authority is bound to admit the application - In the facts it is seen that the applicant bank clearly comes within the definition of Financial Creditor. There has been default in nonpayment of the decreed amount which has since attained finality. We are also satisfied that the present application is complete in all respect and there is no disciplinary proceeding pending against the proposed IRP. The applicant financial creditor is entitled to claim the decretal amount from the corporate debtor and the respondent corporate debtor has committed clear default in non-payment of the financial debt as per the decree. In terms of Section 7 (5) (a) of the Code, the present application is admitted - Moratorium declared. X X X X Extracts X X X X X X X X Extracts X X X X ..... a bare perusal of the Form reveals that the same is complete in all respect and there is no infirmity in the same. 6. Sub-section (3) (b) of Section 7 further mandates the financial creditor to furnish the name of an Interim Resolution Professional. In compliance thereof the applicant has proposed the name of Mr. Manish Agarwal, for appointment as Interim Resolution Professional having registration number IBBI/IPA-002/IP-N00223/2017-18/10904 resident of 707, Saket, Opp. Rohtash Sweets, Meerut, Uttar Pradesh, 250 001 with email - id [email protected]. Mr. Manish Agarwal has agreed to accept the appointment as the interim resolution professional and has signed a communication dated 05.01.2019 in Form 2 in terms of Rule 9(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. There is a declaration made by him that no disciplinary proceedings are pending against him in Insolvency and Bankruptcy Board of India or elsewhere. In addition, further necessary disclosures have been made by Mr. Manish Agarwal as per the requirement of the IBBI Regulations. Accordingly, it is seen that the requirement of Section 7 (3) (b) of the Code has been satisfied. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties were heard on 09.05.2019 and the order was reserved. 14. In the reply respondent has mainly submitted about the numerous difficulties faced by the corporate debtor in running the affairs of the company. It is submitted that Central Pollution Control Board had directed on 19.02.2013 for immediate closure of the production activities of the company. The unit was further sealed on 09.03.2013. It is contended that their representations were not considered expeditiously. The reply largely deals with the fact that the company faced many challenges in its operation. Respondent has also blamed the financial creditors in causing huge loss to the company. 15. These issues are irrelevant for the disposal of the present proceeding filed under the Code. Initiation of CIRP under Section 7 of the Code is not an adversary litigation. It is neither a recovery proceeding nor can be treated to be a suit or case pending for decision on merit. 16. Hon'ble Supreme Court in the case of Mobilox Innovations Private Limited V. Kirusa Software Private Limited reported in AIR 2017 SC 4532 at Para 19 has observed that: "Once the adjudicating authority/Tribunal is satisfied as to the existenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal, the decree passed in favour of the applicant bank has since become final and binding upon the corporate debtor. 22. Once there is a debt and default and the application is complete, the Adjudicating Authority is bound to admit the application. 23. In the facts it is seen that the applicant bank clearly comes within the definition of Financial Creditor. There has been default in nonpayment of the decreed amount which has since attained finality. We are also satisfied that the present application is complete in all respect and there is no disciplinary proceeding pending against the proposed IRP. The applicant financial creditor is entitled to claim the decretal amount from the corporate debtor and the respondent corporate debtor has committed clear default in nonpayment of the financial debt as per the decree. 24. As a sequel to the above discussion and in terms of Section 7 (5) (a) of the Code, the present application is admitted. 25. Mr. Manish Agarwal, having registration number IBBI/IPA-002/IP-N00223/2017-18/10904 resident of 707, Saket, Opp. Rohtash Sweets, Meerut, Uttar Pradesh, 250001 with email - id [email protected] is appointed as an Interim Resolution Professi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 may be required by him in managing the day to day 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 would be at liberty to make appropriate application to this Tribunal with a prayer for passing an appropriate order. The Interim Resolution Professional shall be under duty to protect and preserve the value of the property of the 'Corporate Debtor' as a part of its obligation imposed by Section 20 of the Code and perform all his functions strictly in accordance with the provisions of the Code, Rules and Regulations. 30. The office is directed to communicate a copy of the order to the Financial Creditor, the Corporate Debtor, the Interim Resolution Professional and the Registrar of Companies, NCT of Delhi & Haryana at the earliest possible but not later than seven days from today. The Registrar of Companies shall update its website by updating ..... X X X X Extracts X X X X X X X X Extracts X X X X
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