9911796707
TMI Blog2021 (8) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... n Form-2. Thus, the present Company Petition satisfies all the necessary requirements for admission. Petition admitted - moratorium declared. X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid holdings were accordingly reflected in the Demat account statements of the petitioners. vi. As per the terms and conditions of the subscription of NCDs the petitioners herein were entitled to an interest on the Principal Amount, as invested, @17.25% per annum. The said payment was to be made to the petitioners herein on a quarterly basis. Furthermore, the petitioners were also entitled to repayment of Principal Amount in eight quarterly instalments starting from the end of the 5th quarter. vii. Initially till May 2017, the payments were made as per schedule. However, post May 2017, the Respondent has been continuously defaulting in making the scheduled payment. viii. After continuous follow up by the Debenture Holders, a letter came to be issued by the Respondent on 05.02.2019, whereby it admitted to the fact that no interest has been paid post the March 2018, quarter and that even with respect to the March 2018 quarter, only 80% of the payment has been made. The Respondent further admitted to the fact that in addition to the payment of interest, the repayment of the Principal amount is also due. It was stated in the letter that due to adverse Market Conditions in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inistration of large numbers of individual debenture holders. The trust deed outlines the rights and obligations of each party. iv. Further, even if the petitioners are claiming their statutory right, such a statutory right is not available to any person in vacuum. There has to be a fad situation and contractual basis conferring rights and imposing duties on the parties. The statutory right does not merely obliterate these rights and duties which are part of the contract. There has to be some consecration given, the written executed contract and agreement between the issuer company and the debenture trustee whose is acting for the benefit of the debenture holders. v. Further, the action is pre-mature, the petitioner, ought to have approached the debenture trustee and till date has not done so, the petition is premature in as much as there is no majority decision by the Debenture Holders to initiate any proceedings. vi. The remedy available to the debenture holders/ debenture trustee is an "secured" debenture holders, is to enforce the security provided under the agreement. However, invoking corporate insolvency is a drastic measure. Such a measure should be taken only in dras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter could not be listed. Thereafter, the matter was listed on board on 05.07.2021 and was adjourned from 05.07.2021 to 27.07.2021. 3. The only contention raised by the Corporate Debtor all through in his reply affidavit as well as in the written submissions is that the remedy available to the petitioners being debenture holders is to enforce the security provided under the agreement and invoking the Corporate Insolvency is a drastic measure and such measure should be taken only in drastic circumstances when the creditor has no other measure to recover the amounts. He further contends that on various occasions the Corporate Debtor made offers to settle the dispute with the petitioners amicably in view of ongoing pandemic situation. However, unfortunately the petitioners were not agreeable. 4. Thus, it is very clear from the above reply as well as written submission of the Corporate Debtor that the Corporate Debtor is not disputing the debt and default in this Company Petition. The petitioners being the debenture holders, their claims squarely falls within the definition 'Financial Debt'. When once the debt and default are established and the debt is shown to be within limitation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor. e. That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. f. That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. g. That the order of moratorium shall have effect from the date of pronouncement of this order till the completion of the corporate insolvency resolution process or until this Bench approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, as the case may be. h. That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under section 13 of the Code. i. During the CIRP period, the management of the corporate debtor will vest in the IRP/RP. The suspended directors and emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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