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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 ..... ast three years and stand at ₹ 19.46 crores. It had net revenue from operations of ₹ 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 ₹ 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. The respondent is not an insolvent company, the respondent should be given some more time to repay the debt. Considering the amount involved, its financial status and the present economic scenario, despite the argument of the petitioner that it is a fit case for admission, it would be fair to allow the respondent some more time. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acility 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 resolution dated December 12, 2018. (b) An irrevocable undertaking for recourse against the corporate debtor dated December 12, 2018 (undertaking), and in addition to the above documents, the corporate debtor had also provided a demanded promissory note in favour of the financial creditor which was also dated December 12, 2018. (2) It is submitted that under the terms of RPA read with undertaking, the corporate debtor requested the financial creditor to purchase and assigned in favour of the financial creditor, the receivables ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates. 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 get in touch with the corporate debtor for its payment. (6) It is submitted that the petitioner approached the corporate debtor asking details of the commercial dispute and requesting for payments to be made under the recourse undertaking. However, the corporate debtor failed to reply or arrange payment under the 3 invoices assigned to petitioner and therefore, the financial creditor exercised recourse against the corporate debtor under the undertaking by claiming amounts paid by the petitioner towards the invoices. (7) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 granted by the corporate debtor in favour of the petitioner, it is established that the respondent admits to the financial debt of USD 4,00,000 or rupee equivalent along with interest from such date of demand at aggregate rate of (5.7 + 4.0) per cent. per annum or such other rate, and at such rest (monthly or otherwise). 7. At this point it is relevant to note that the hon'ble Supreme Court in the case of Mobilox Innovations P. Ltd. v. Kirusa Software P. Ltd. [2017] 205 Comp Cas 324 (SC) ; [2018] 1 SCC 353, has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionwide 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 ₹ 1 lakh to ₹ 1 crore so that the Code is not used merely for recovery of debt. Modifications and suspension of various provisions of the Code have been initiated so that companies facing financial stress due to the pandemic can be supported rather than be pushed into CIRP, else in the present scenario they may end up in liquidation and lose value further, which is the not objective of the IBC or other enactments. Steps have also been taken to ensure availability of more ..... X X X X Extracts X X X X X X X X Extracts X X X X
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