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TMI Blog2022 (1) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudicating Authority) Rules, 2016, by, inter alia, seeking to initiate corporate insolvency resolution process (CIRP) in respect of "Concord Creations (India) P. Ltd.", on the ground that it has committed default for total amount of Rs. 27,39,899.33 (rupees twenty seven lakhs thirty nine thousand eight hundred and ninety nine and paise thirty three only) as on November 30, 2019. 2. Brief facts of the case, as mentioned in the company petition, are as follows : (1) It is submitted that the petitioner had granted Export Finance Facility to Concord Creations (India) P. Ltd., the corporate debtor under : (a) The receivables purchase factoring agreement (RPA) dated December 12, 2018 duly authorised by the corporate debtor vide its board r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debtor and Acquarius USA Inc., the financial creditor shall have right of recourse against the corporate debtor for recovery of aforesaid payments. The payment towards each invoice was due and payable at sight of the documents through bank transfer (repayment due date) failing which the financial creditor had a right to recourse against the corporate debtor. (5) It is submitted that the petitioner reminded Aquarius USA Inc., of its obligation to make payments towards the invoices directly to the petitioner on repayment due dates. However, vide e-mail dated September 12, 2019 Aquarius USA Inc. informed the petitioner that the said invoices are disputed and therefore payments cannot be made. Aquarius USA Inc. also advised the petitioner to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill the date of this application. (10) The petitioner has filed proof of service of the petition to the respondent. 3. On perusal of the order sheet dated March 2, 2021 it is seen that counsel for the respondent Mr. K. S Satish who had filed vakalath as early as on March 16, 2020 but no statement of objections was filed. 4. Heard Ms. Ayushi Agarwal, learned counsel for the petitioner, we have carefully perused the pleadings of the petitioner, and the extant provisions of the Code and the law. 5. We have perused the receivables purchase factoring agreement dated December 12, 2018 irrevocable undertaking for recourse on the corporate debtor dated December 12, 2018. 6. On perusal of the demand promissory note dated December 12, 2018 gran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had net revenue from operations of Rs. 19.31 crores which has increased over the last three years and shows a growth rate of 46 per cent. over last year. It has a net profit of Rs. 77 lakhs and an improving and positive return to equity ratio. Thus prima facie, it has sufficient income and assets to repay its debt and cannot be termed as insolvent. 9. We may add that the impact of the present financial distress caused by the global novel corona virus pandemic necessitating a nationwide lockdown, cannot be ignored. Major decisions have been taken to protect industry from its effects, to inject economic stimulus and to revive the economy. More specifically, on March 24, 2020 the Legislature increased the minimum threshold of default from Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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