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TMI Blog2017 (6) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... de was that the Petitioner Company was stated to be registered as a "Sick Industrial Company" with Board for Industrial and Financial Reconstruction. However from 1th December 2016 the Sick Industrial Companies Repeal Act 2003 stood abated/repealed. The Petitioner has thus moved this Petition before NCLT. The Petitioner has affirmed that this Petition has been filed within the prescribed period of 180 days from the commencement of the I & B Code 2016. 3. Admittedly the Petitioner is a 'Corporate Debtor'. The Petition under consideration is submitted on requisite "Form 6" to initiate Corporate Insolvency Resolution Process under The Code. Total amount of Debt has two components, as stated in the impugned petition, i.e. 'Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Special Provisions) Repeal Act, 2003, along with Section 4(b) of the said Act coming into force on and from 1st December, 2016, the aforesaid reference of the corporate debtor stood abated from the said date. Prior to the coming into effect of the said Repeal Act, the government amended Section 4(b) of SICA Repeal Act, 2003, under Section 252 of OBC, 2016 in the manner specified in the Eighth Schedule to IBC, 2016, which is reproduced hereunder:- (b) on such date as may be notified by the Central Government in this behalf, any appeal preferred to the Appellate Authority or any reference made or inquiry pending to or before the Board or any proceeding of whatever nature pending before the Appellate Authority or the Board under the Sick I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amended by Section 252 of the Insolvency and Bankruptcy Code, 2016, in the manner specified in the Eighth Schedule of IBC 2016, allowed a company in respect of whom such reference stood abated, to make a reference to the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016 within one hundred and eighty days from the commencement of the Insolvency and Bankruptcy Code, 2016, in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016. The second proviso of said section 4(b) further provides that no fees shall be payable for making such reference under Insolvency and Bankruptcy Code, 2016 by a company whose appeal or reference or inquiry stands abated under this clause." 6.2 The Petitioner has also an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest created by the corporate debtor in respect of its property shall be abated. On due analysis of this section it is unambiguous that the Adjudicating Authority (NCLT) shall by an order declare Moratorium for prohibiting any action to recover or to enforce any security interest created by a "Corporate Debtor" in respect of his property, including any action under SARFAESI Act. Moreover, in my humble opinion, the life of the "Insolvency Resolution Process" under The Code is very limited, stated to be 180 days. This period is not eclipsing the provisions of SARFAESI Act for an unlimited period. The application of I & B Code is for a limited period, but in no way in contradiction to the provisions of the SARFAESI Act. Under the said act a cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action under the Securitisation and Reconstruction of Financial Assets and Enforcement of any Security Interest Act.
10. The appointment of proposed Interim Resolution Professional viz, Mr. Vipul K Choksi is confirmed, who shall perform the duties as assigned under Section 18 of The Code. He is directed to inform the progress of the Resolution Plan and the compliance of the direction such as Public Announcement to this Bench on or before 28th of June, 2017. The Petitioner shall also act upon under the provisions of Section 13 by making a public announcement to comply the provisions of Section 15 of The Code.
11. The commencement of the Corporate Insolvency Resolution Process is hereby declared. X X X X Extracts X X X X X X X X Extracts X X X X
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