9911796707
TMI Blog2017 (9) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... ered under the Companies Act, 1956. The Registered Office of the petitioner company is situated in village Tati Tahiya, Palsana, Surat. 3. In this petition, State Bank of India is shown as the Financial Creditor of the petitioner company. The petitioner filed the resolution passed by the Board of Directors for initiating Corporate Insolvency Resolution Process. The Board of Directors of the petitioner company authorized Mr. Paresh K. Patel, one of the Directors, to file this petition on behalf of the company. It is the case of the applicant that State Bank of India sanctioned cash credit of Rs. 1,00,00,000/- term loan of Rs. 17,00,00,000/- and another term loan of Rs. 8,00,00,000/-, aggregating to Rs. 26,00,00,000/-. Subsequently, the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 9.2.2016. The said Reference stood abated vide order dated 30.11.2016 passed by the BIFR for the reason that the State Bank of India being the sole secured creditor has already taken possession of properties of the undertaking under Section 13(4) of the SARFAESI Act. 5. The applicant furnished list of Financial Creditors, both secured and unsecured and list of Operational Creditors. The applicant also furnished the list of Statutory liabilities. The applicant also furnished entire information relating to the company, including copies of Valuation Reports of secured immovable properties. The applicant also filed an affidavit in support of the application. The applicant also served copy of the application with annexures on State Bank o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the application as narrated above. 7. In the case on hand, the proceedings before the BIFR stood abated not by virtue of Section 4 of the Sick Industrial Companies (Special Provisions Repeal) Act, 2003, but on account of taking possession of the assets of the applicant company by State Bank of India under the provisions of the SARFAESI Act. 8. Heard arguments of Learned Counsel appearing for both the sides. 9. The applicant is a Corporate Debtor. Therefore, it comes within the meaning of Corporate Applicant defined in sub-section (5) of Section 5 of the Code. In the case on hand, the applicant is a Corporate Person. It owes debt to secured Financial Creditor as well as Operational Creditors. Therefore, the applicant is entitled to fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has also got some other debts other than the debt due to the Secured Financial Creditor, State Bank of India. In these circumstances, it is only the Resolution Process that may help the company to revive and in case it is not possible, the company would go for liquidation and, in which case, the interest of the Secured Creditors will always be protected and, therefore, no prejudice or loss would cause to the Financial Creditor, State Bank of India. In that view of the matter, this Adjudicating Authority is of the view that this application is bona fide and it is not with a view only to have moratorium or postponement of realization of debts by the State Bank of India. 11. A perusal of the application and the annexures goes to show that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a public announcement in terms of Clause (b) of sub-section (1) of Section 13 of the Code. 15. In view of the commencement of the Insolvency Resolution Process with the admission of this application and appointment of the Interim Resolution Professional, this Adjudicating Authority hereby passes the order declaring moratorium under Section 13(1) (a) prohibiting the following as laid down in Section 14 of the Code :- (i) the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (ii) transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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