9911796707
TMI Blog2021 (5) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... he Code, 2016") read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by M/s. The Federal Bank Limited (hereinafter referred to as "Financial Creditor") for initiation of Corporate Insolvency Resolution Process (in short "CIRP") against M/s. Alba Industries Limited (hereinafter referred to as "Corporate Debtor") on the ground that it has defaulted in repaying an amount of Rs. 18,03,08,877.60 as on 07.11.2019. 2. On perusal of this application and the averments made by the Applicant in the application, the Corporate Debtor had approached the Financial Creditor for availing credit facilities. The Financial Creditor vide letter dated 26.08.2015 sanctioned Packing Credit limit of Two Crore; FD/UB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hence, this application is within the period of limitation. 4. The learned counsel for the Corporate Debtor filed counter on 05.11.2020 submitted that, it is contended that a person has to be declared as bankrupt only when his "Liability exceeds the Assets" and mere default in payment of loan will not entitle the applicant bank to take harsh steps against respondent which is having a stock worth about Rs. 300 crore approximately which is one among the properties given as a security to the applicant bank. 5. It is further submitted that on 24.03.2017, a team of officers headed by Revenue Divisional Officer, Tenkasi inspected the godown of the respondent on the direction of the Hon'ble High Court of Madras and Rs. 300 crore worth fini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... These two applications were filed by Corporate Debtor before this Tribunal on 05.03.2021. 8. IA/167(CHE)/2021 filed pursuant to Rule 11 of National Company Law Tribunal Rules, 2016 by the Applicant Company, seeking to eschew the documents from Pages 147 to 163(a) of the main application (IBA/43/2020) filed by the Respondent-Bank herein for want of proper affidavits. 9. Learned Counsel for the Applicant/Respondent submits that Section 7 application filed by the applicant has not followed the Rules 26(2), 34(4) and 127 of NCLT Rules 2016 and that the statement of accounts has not been accompanied by the Certificate under Section 4 of Banker's Book of Evidence Act. Furthermore, Applicant/Respondent contends that Form-6 makes it clear tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loan account was categorically admitted. 13. Heard the submissions made by the Learned Counsel/Authorized Representative for both the parties. We are of the view that the grounds as raised by the Applicant in the present IA/167(CHE)/2021 and IA/168(CHE)/2021 do not hold much, since the affidavit not having been notarized is only a procedural irregularity and it is a curable defect. This irregularity can be rectified by the Applicant at any point of time. It is also pertinent to note here that the proviso to Section 7(5) of IBC, 2016 states that this Adjudicating Authority before rejecting the application under sub-clause (b) of sub-section (5) of Section 7 of IBC, 2016 shall give a notice to the Applicant to rectify the defect in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. II. That Supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. III. That the provisions of sub-section (1) of Section 14 of IBC shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. IV. That the order of moratorium shall have effect from this Order till the completion of the corporate insolvency resolution process or until this Bench appr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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