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TMI Blog2022 (7) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... a financial debt due and payable by the corporate debtor to the applicant and its default stands established, hence it is a fit case to put the Corporate Debtor in CIRP. Petition admitted - moratorium declared. - CP (IB) No. 299/7/HDB/2018 - - - Dated:- 24-6-2022 - Dr. Venkata Ramakrishna Badrinath Nandula, Member (J) And Veera Brahma Rao Arekapudi, Member (T) For the Appellant : G.P. Yash Vardhan, Advocate For the Respondents : Nitish Bandary, Advocate ORDER 1. This Company Petition is filed by the erstwhile Oriental Bank of Commerce (now Punjab National Bank) (hereinafter called Financial Creditor ) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. NCS Sugars (hereinafter called Corporate Debtor ) alleging that the Corporate Debtor had committed default in making payment to the Financial Creditor. This petition has been filed by invoking section 7 of the Insolvency Bankruptcy Code, 2016 (hereafter called I B Code) read with Rule 4 of the Insolvency Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. The present petition is filed before this Adjudicating Authority on the ground that the Corporate Deb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory. The factory management of NCS Sugars Ltd. had commenced on 17.01.2003 and it had registered a phenomenal growth in its yield and could earn huge amounts. The respondent/Corporate Debtor has made sugar production a full year activity. Thus, the Corporate Debtor has bagged second place in Best Case Development Award. (ii) However, the huge glut that had engulfed the sugar industry in the country had plunged the sugar mills including the Corporate Debtor into debt leading to untold losses. Its export potential got affected. (iii) The respondent/Corporate Debtor could not even declare lockout or crop holiday having regard to livelihood of farmers who are depending on sugarcane industry and their families. (iv) Sugar companies, Sugar Mills Associations and other stakeholders approached various Hon'ble High Courts. The Hon'ble Supreme Court got all such proceedings from Hon'ble High Courts transferred unto itself vide order dated 11.09.2018 and was pleased to grant status quo. A copy of said order dated 11.09.2018 is at pages 10-13 of the Counter. (v) The respondent invoked force majeure and submitted that in view of the stay granted by the Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debt is disputed so long as the debt is due i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date. It is only 1 when this is proved to the satisfaction of the adjudicating authority that the adjudicating authority may reject an application and not otherwise. 10. We therefore, proceed to decide the point as framed above in the legal frame of the aforesaid ruling. The Financial Creditor, in support of its plea that it had advanced sums aggregating to Rs. 130,37,47,281/- to the Corporate Debtor for its business needs, had placed reliance among other, on the following documents: (a) Sanction Letter dated 18.05.2006. (b) Agreement of Term Loan dated 12.06.2006. (c) Term Loan Agreement under Banks Consortium Scheme dated 12.08.2006. (d) Common Agreement dated 12.06.2006 executed by the Corporate Debtor in favour of the Financial Creditor. (e) Sanction letter dated 14.07.2007. (f) Sanction letter dated 28.03.2008. (g) Agreement of Term Loan dated 31.03.2008 (h) Sanction letter dated 18.03.2010. (i) Common Agreement dated 22.03.2010. (j) Sanction letter dated 20.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l accepted by the corporate debtor but failed to comply, we have no hesitation to hold that the applicant has established financial debt of a sum of over Rupees one crore payable by the Corporate Debtor. The Demand Notice dated 12.05.2014 issued under section 13(2) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 issued to the Corporate Debtor remained uncomplied. The Financial Creditor has also offered OTS to the Corporate Debtor. However, the Corporate Debtor failed to make payment in terms of the approved OTS. The Balance Sheet of the Corporate Debtor for the year 2016-2017 filed by the Corporate Debtor at pages 601-635 also disclosed financial debt of the Corporate Debtor in favour of the applicant. Therefore, this record clinchingly establishes not only the existence of financial debt but also its default by the Corporate Debtor. Therefore, this Tribunal is satisfied, a financial debt due and payable by the corporate debtor to the applicant and its default stands established, hence it is a fit case to put the Corporate Debtor in CIRP. 14. Therefore, the Adjudicating Authority admits this Petition under Section 7 of IBC, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... btor under Section 33, whichever is earlier. (G) That the public announcement of the initiation of Corporate Insolvency Resolution Process shall be made immediately as prescribed under section 13 of Insolvency and Bankruptcy Code, 2016. (H) That this Bench hereby appoints Shri K. Sivalingam, having Registration No. IBBI/IPA-001/IP-P-01597/2018-2019/12430, as Interim Resolution Professional, whose contact details are: e-mail ID: siva[dot]k220353[at]gmail[dot]com Address: Flat No. 1603 Tulive Horizon Residences, 16/01 Arunachalam Road, Saligramam, Chennai, Tamil Nadu-600093. as Interim Resolution Professional to carry the functions as mentioned under the Insolvency Bankruptcy Code. (I) Proposed IRP filed Form-2 issued by the Institute of Insolvency Professionals. His Authorisation for Assignment is valid till 12.12.2022. This information is also available in IBBI Website. Thus, there is compliance of Regulation 7A of IBBI (Insolvency Professionals) Regulations, 2016, as amended. Therefore, the proposed IRP is fit to be appointed as IRP since the relevant provision is complied with. 15. The petitioner is directed to communicate this order to the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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