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TMI Blog2019 (6) TMI 1569X X X X Extracts X X X X X X X X Extracts X X X X ..... lakh. After a conjoint reading of Section-7 of the Code along with Rule 4 (2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, we are satisfied that a default has occurred and the application under sub section 2 of Section 7 is complete. The name of the IRP has been proposed and there are no disciplinary proceedings pending against the proposed Interim Resolution Professional. Petition admitted - moratorium declared. - C. P. No. IB-81(PB)/2019 - - - Dated:- 11-6-2019 - M. M. Kumar, C.J. (President) And Santanu Kumar Mohapatra , Member (T) For the Appellant : H.P. Bhardwaj, Advocate For the Respondents : Devendra Singh, Adv. and Karishma, Practising Company Secretary ORDER M.M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the various facilities were renewed from time to time till 25.09.2013. The respondent - corporate debtor had executed various security documents in favour of the petitioner- financial creditor to secure the various facilities sanctioned to it and the same have been placed on record (Annexure 1/N(colly), Annexure 1/Q(colly) and Annexure 1/U). 4. The petitioner states that the account of the respondent-corporate debtor was classified as NPA on 31.03.2014 and the Bank had also issued a notice under section - 13(2) of the SARFESI Act, 2002 on 16.04.2014 (Annexure 1/V). It is also submitted that charge was created on the various properties and the same was registered with the Registrar of Companies. Further the petitioner - financial c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itor has also placed on record CRILC Report (Annexure 1/X) and a statement of account along with the Bankers Certificate under the Bankers Book Evidence Act (Annexure 1/AA). 9. After various attempts were made to serve the respondent -corporate debtor through various modes no one had put in appearance on their behalf and were proceeded ex-parte vide order dated 01.02.2019. However, subsequently the corporate debtor had put in appearance by filing an application with a prayer to set aside the ex-parte order and the same was allowed. 10. A reply to the petition was then filed by one Mr. Dev Raj Singh, being the Authorized signatory of the Respondent-Corporate Debtor and also a Rejoinder to the Reply has been filed by the Petitioner-Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... most, a Code for reorganization and insolvency resolution of corporate debtors as has been held by the Hon'ble Supreme Court in the Case of Swiss Ribbons Pvt. Ltd Anr. vs. Union of India Ors. (Writ Petition Civil No. 99 of 2018 decided on 25.01.2019). In this regard Para 12 of the said judgement is reproduced below in verbatim: 12. It can thus be seen that the primary focus of the legislation is to ensure revival and continuation of the corporate debtor by protecting the corporate debtor from its own management and from a corporate death by liquidation. The Code is thus a beneficial legislation which puts the corporate debtor back on its feet, not being a mere recovery legislation for creditors. The interests of the corporate de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered in the of ECL Finance Limited vs. Digamber Buildcon Pvt Ltd (IB-1039(PB)/201.8). 18. The aforesaid discussion and the material placed on record would lead us to confirm that the petitioner-financial creditor had disbursed money to the respondent-corporate debtor. Though a considerable long period has lapsed the amount due has not been repaid back to the financial creditor- petitioner. It is accordingly held that the respondent-corporate debtor has committed default in repayment of the outstanding financial debt which exceeds the statutory limit of rupees one lakh. 19. After a conjoint reading of Section-7 of the Code along with Rule 4 (2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016. The needful shall be done within three days from the date of receipt of this order by the Financial Creditor. The amount however be subject to adjustment by the Committee of Creditors as accounted for by Interim Resolution Professional and shall be paid back to the Financial Creditor. 24. There is a general complaint received against the financial creditors, banks, NBFCs and Asset Reconstruction Companies that the amount claimed by them is far more than what is owed by the corporate debtor to them. Many a times the rate of interest is alleged to be exorbitant and allegations are levelled that a penal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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