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2017 (8) TMI 139 - Tri - Insolvency and BankruptcyInitiating corporate insolvency resolution process - Held that:- The figures extracted indicate the losses with continued fall in revenue, therefore, it seems that the applicant has fallen into debt trap and is competent to set in motion the insolvency resolution process as contemplated under the 'Code'. On the basis of the aforesaid statements of the affairs of the company, the outstanding amount as per the books of the company towards financial creditors is ₹ 114.20 crores and the amount in default towards financial creditors is ₹ 117.22 crores. It is represented that the total amount of operational creditors (Raw Material Suppliers) is ₹ 12.18 crores and the amount in default is ₹ 02.15 crores. The total amount of operational creditors (Government dues) is ₹ 00.17 crores and the amount in default is ₹ 00.10 crores. The total amount of operational creditors (Worker Employees) is ₹ 00.24 crores and the amount in default is nil. The total amount of operational creditors (Service providers) is ₹ 00.24 crores and the amount in default is ₹ 0.11 crores. In view of the above, the instant petition deserves to be admitted. It is, however, observed that the applicant company save some sketchy particulars has not given any road map as to how it is going to keep itself afloat as a going concern. However, keeping in perspective the objects for which the 'Code' has been brought into force and to balance the interest of all stakeholders, the instant application warrants to be admitted to prevent further erosion of capital and to safeguard the assets of the Applicant Company/Corporate Debtor. Also declare a moratorium in relation to the matters as contemplated under Section 14 of the 'Code'.
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