Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (2) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1668 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency Resolution Process - Corporate Applicant - outstanding debts - Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 - HELD THAT:- It is worth to note that SEBI had initiated action against the Corporate Applicant for recovery of its dues and the figure of ₹ 2,18,57,301/- has been arrived at after part-recovery of its dues. Hence, these dues are nothing but in the nature of ‘Regulatory Dues’ and not operational dues. On merits it can further be added that this Petitioner has not defaulted in any payments except the regulatory dues of SEBI and BSE. The Petitioner has no other Financial/Operational Creditor. Prima facie, it seems that this is a Petition filed with an intention to escape the liability of paying off the ‘Regulatory Dues’. Insolvency Resolution Process of this Corporate Applicant would create a wrong precedent for those defaulters who have not paid the government dues or regulatory dues but by filing insolvency proceedings seeking a shelter against recovery on the ground of commencement of Moratorium in case of admission of insolvency petition - SEBI has enough power to realize the outstanding debt by direct recovery from the revenue operations of the debtor. The Petition is defective as the Petitioner does not owe Operational/Financial dues to SEBI or BSE or any other entity. As far as the regulatory dues of SEBI and BSE are concerned, SEBI has its own separate mechanism to recover the same. No fruitful purpose shall be served to declare the Corporate Debtor as insolvent having business operations or resources of sufficient income through which the statutory liability ought to have been squared up under the instructions of the regulatory authorities. Petition dismissed.
|