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TMI Blog2019 (4) TMI 2159X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Shri Rajeswara Rao Vittanala, Member (Judicial) And Hon'ble Dr. Ashok Kumar Mishra, Member (Technical) For the Petitioner : Shri Ian Lewis. For the Respondent : Shri C.K. Nanda Kumar with Varun. S. ORDER PER: RAJESWARA RAO VITTANALA, MEMBER (J) 1. C.P.(IB )No. 155/BB/2018 is filed by M/s. Elite Brilliant Limited,(Petitioner /Operational Creditor) U/s 9 of IBC, 2016, R/w Rule 6 of Insolvency and Bankruptcy (AAA) Rules, 2016, by inter alia seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/s .ILC Industries Limited,(Respondent/Corporate Debtor)for committing a default in payment of Rs. 25,13,97,045/- date of default on 29.12.2013. 2. Brief facts of the case, as mentioned in the Company Petition, which are relevant to the issue, are as follows: 1) M/s. Elite Brilliant Limited(Petitioner/Operational Creditor) is a private limited Company, CIN No. 51927811 having its registered office at Suite 1101, 11/F, Supreme House, 2A Hart Avenue Kowloon, Hong Kong. 2)M/s. ILC Industries Limited, (herein after referred as Respondent/Corporate Debtor) is a private limited was incorporated on 13.12.2000. Its nominal share Capital is Rs.5 Crore. 3) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent us this notice despite our telling you client how our hands are tied owning to the attachment of our bank accounts in separate legal proceedings initiated by the Income Tax Department. 9) Empty assurances have been given in the Reply notice dated 28.06.2018 that ... Rest assured, we shall aim to settle your client's dues, as soon as feasible. Even in the Statement of Objections of the Corporate Debtor to the Petition dated 08.11.2018, the Corporate Debtor, admits the debt but claims that it cannot repay the money to the Operational Creditor. 10) The Corporate Debtor has filed Balance Sheet as at 31.03.2018 which shows that the Corporate Debtor is not in a position to pay the debt as its Current Liabilities amount to Rs.209.20 Crores which is greater than its Total Assets of Rs.119.69 Crore. 3. The Respondent/Corporate Debtor has filed Statement of Objections dated 05.11.2018 by inter alia contending as follows: 1) The Respondent/Corporate Debtor, M/s. ILC Industries Ltd, is a Company, engaged primarily in the supply and/export of iron ore and iron ore products procured from various parts of Karnataka to purchasers around the world. The Corporate Debtor buys the iron ore a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectors, the suppliers of the Corporate Debtor were unable to meet the demand raised by the Creditor. The Corporate Debtor was also unable to find alternate suppliers in the market since the entire industry was affected. Generally, all the purchases of iron ore in the industry will require bulk advances that goes to the individual suppliers. The Corporate Debtor had also advanced in huge amounts to the corresponding suppliers of ore who in turn defaulted their supplies due to sudden collapse in the mining industry. 7) For the period after March 2011, the Corporate Debtor tried to produce and supply iron ore to the Creditor from other states like Goa and Andhra Pradesh where the exports were still allowed in order to meet the commitments as per MoU. Accordingly, transactions were continued on the basis of separate agreements drawn up from time to time for the supply of iron ore. Even in respect of such transactions, advances were extended to the Corporate Debtor. However, the latter was unable to meet the demand as committed and defaulted on supplies during this period. 8) However, the Corporate Debtor, being unable to procure the required quantities of iron ore as demanded by the Op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts filed by the petitioner clearly established that the Respondent failed to pay outstanding of Rs.25,13,97,045/-. As stated supra, the Respondent has also admitted its liability towards the Petitioner. The Petition is filed strictly in accordance with law and also suggested a qualified Resolution professional namely Mr. Ravindranath Narayana Rao is named as IRP with Registration No. IBBI/IPA-001/IPP00645/ 2017-18/11099, to appoint as IRP. Therefore, we are of prima facie view that the said RP is provisionally qualified to be appointed as IRP. Hence, it is fit case to admit by initiating CIRP respect of Corporate Debtor with other consequential orders. 8. In view of the above facts and circumstances of the case, and by exercising powers conferred on this Adjudicating Authority, U/s 9(5)(i) and other extant provisions of the IBC, 2016, the following orders are passed: 1) CP(IB)No. 155/BB/2018 is hereby admitted by initiating Corporate Insolvency Resolution Process (CIRP) in respect of M/s. ILC Industries Limited, Corporate Debtor; 2) We hereby appointed Mr. Ravindranath Narayana Rao is named as IRP with Registration No. IBBI/IPA-001/IPP00645/ 2017-18/11099, is hereby appointed as I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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