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TMI Blog2022 (7) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... lations, 2015 admitting the default of its repayment obligations under the Framework Agreement as on 31.03.2022 as well as 31.12.2021. This Bench is of the view that the existence of debt and default has been proved - petition admitted - CIRP is ordered to be initiated - moratorium declared. - C.P.(IB)-527(MB)/2022 - - - Dated:- 20-7-2022 - Hon ble Member (Judicial) : Justice P.N. Deshmukh (Retd.) And Hon ble Member (Technical) : Shri Shyam Babu Gautam For the Financial Creditor : Senior Counsel, Mr. Ravi Kadam a/w Counsel, Mr. Pulkit Sharma For the Corporate Debtor : Counsel, Mr. Shyam Kapadia ORDER Per - Coram 1. The Present Company Petition (IB)-527(MB)/2022 is filed under section 7 of Insolvency and Bankruptcy Code, 2016 (for brevity IBC, 2016 ) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity the Rules ) by Bank of India (for brevity Financial Creditor ) through its Authorised Signatory, Mr. Harish V, who has been duly authorised vide Power of Attorney dated 05.11.2019 for initiating Corporate Insolvency Resolution Process (CIRP) against Future Retail Limited (for brevity Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stress on account of Covid-19. The request was considered by the Lenders (including the Financial Creditor) allowing one-time restructuring under the RBI Circular on 29.10.2020. The Corporate Debtor and the Lenders (including the Financial Creditor) executed the Framework Agreement dated 26.04.2021 for restructuring of the existing outstanding amounts. As per the terms of the Framework Agreement, the Corporate Debtor was under an obligation to repay an amount of atleast Rs. 788.40 Crores to the Financial Creditor and the other lenders by 31.03.2022. The provisions of the Framework Agreement and RBI Circular read in conjunction imply that the Event of Default under the Framework Agreement requires an automatic and retrospective downgrade of the loan account to an NPA, at the end of the review period of 30 days, and upon occurrence of such an event of default under the Framework Agreement, the defaults existing prior to the Framework Agreement stand revived. In view of this, the classification of the facilities given to the Corporate Debtor has been downgraded to NPA in the books of the Financial Creditor on 31.01.2022. 4. In addition to this Framework Agreement dated 26.04. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to monetise the small format stores, therefore, irrespective of its inability to monetise the small format stores, it is required to pay the Lenders. Hence, there is no merit in any event to the submissions of the Corporate Debtor on this count. Further, having moved the Hon'ble Supreme Court on the issues faced by it in monetization of stores, the Corporate Debtor is precluded from taking the same grounds in the present Petition, as it has been duly heard by the Hon'ble Apex Court. Further, the Financial Creditor relied on Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd. (2005) I SCC705 and submitted that it is well settled that mere preferring of an appeal does not operate as stay on the decree or order appealed against nor on the proceedings in the court below. Hence, the pendency of a Writ Petition before the Hon ble Supreme Court cannot operate as a reason for staying the present Petition. Further on the day of Final hearing, the Senior Counsel for the Petitioner argued that the existence of a dispute is not relevant for the purpose of admitting a Petition under Section 7 of the Code and relied on Innoventive Industries Ltd. Vs. ICICI Bank and Anr. (2018) 1S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Requirements) Regulations, 2015 admitting the default of its repayment obligations under the Framework Agreement as on 31.03.2022 as well as 31.12.2021. Looking at the aforementioned facts, this Bench is of the view that the existence of debt and default has been proved, therefore, we hereby admit this company petition and also looking at the consent given by the Insolvency Professional, we hereby appoint Mr. Vijay Kumar V Iyer as an IRP, with a direction to the Financial Creditor to pay remuneration to the IRP and his expenses until the constitution of CoC. 8. Accordingly, this Company Petition is hereby admitted with the following directions: a. The above Company Petition (IB) 527(MB)/2022 is hereby allowed and initiation of Corporate Insolvency Resolution Process (CIRP) is ordered against M/s Future Retail Limited. b. This Bench hereby appoints Mr. Vijay Kumar V Iyer, having Registration No: IBBI/IPA-001/IP-P00261/2017- 2018/10490, Address: Deloitte India Insolvency Professionals LLP, One International Center, Tower 3, 32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Maharashtra, 400013; E-mail: [email protected], Ph.No: +91 9821219493 as the Interim Reso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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