Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (2) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 1448 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- The Respondent not availed the opportunity given by the Adjudicating Authority. Meanwhile the Respondent failed to file statement of objections except stating before the Tribunal on 29.01.2019 by stating "they are seriously pursuing the remedy available to get necessary funds to clear the debt, since more than 1200 employees future is at stake". As stated in the memo dated 18.02.2020, the proposal submitted by the Company for restructuring has been already rejected by the Bank vide letter dated 31.08.2019 issued by Petitioner Allahabad Bank. Therefore, the efforts made by the Respondent to resolve the issue failed, resulting the debt in question is established beyond doubt. It is also seen in the financial statement i.e., Balance Sheet and Profit and Loss Account for the year 31.03.2018 that the Companies liabilities, apart from the share capital have increased by almost ₹ 31 crores over 31.03.2017, being ₹ 526.75 crores as on 31.3.2018 as against ₹ 474.93 crores, over 31.03.2017, thus the Company liabilities have been increased over immediately after proceedings here indicating that the Company is losing its ability to repay its debts and hence prima facie indicating its Insolvency. As stated supra, the Bank also offered several opportunities to the Respondent so as to regularize its accounts but it failed to do so and there is no proposal for OTS/settlement of issue is pending with Bank. The debt and default in question as mentioned in the Petition is proved beyond doubt and it was not being controverted by the Respondent. All the pre-requisite conditions as per extant provisions of Code and the law stand fulfilled in the instant case. The instant Company Petition/Application is filed in accordance with extant provisions of Code and the Rules made thereunder, a qualified Insolvency Professional namely Shri Ramanahalli Shivanna DoddaByregowda, is proposed to appoint him as Interim Resolution Professional, who has filed Written Communication and affidavit dated 04.09.2019, in a prescribed forum, who is prima facie eligible to be appointed and the default in question as admittedly occurred. Hence, it is a fit case for admission to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, appointing IRP, Moratorium etc., as per the Code. Application admitted - moratorium declared.
|