TMI Blog2017 (9) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... he above discussion, the application filed by the Corporate Applicant (Corporate Debtor) is admitted under Section 10(4)(a) of the Code. Section 13 of the Code enjoins upon the Adjudicating Authority to exercise its discretion to pass an order to declare a moratorium for the purposes referred to in Section 14, to cause a public announcement of the initiation of Corporate Insolvency Resolution and call for submission of claims as provided under Section 15 of the Code. Sub-section (2) of Section 13 says that public announcement shall be made immediately after the appointment of Interim Insolvency Resolution Professional. Hence, Shri Premraj Ramratan Laddha, having IP Registration No. IBBI/IPA-001/IP-P00060/2016-17/10138 and residing at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of the applicant that State Bank of India sanctioned cash credit of ₹ 1,00,00,000/- term loan of ₹ 17,00,00,000/- and another term loan of ₹ 8,00,00,000/-, aggregating to ₹ 26,00,00,000/-. Subsequently, the applicant suffered severe liquidity crisis and was unable to repay the debt. State Bank of India classified the debt as non-performing asset on 30th May, 2015. State Bank of India issued a notice under Section 13(2) of the SARFAESI Act, 2002 on 27.5.2016 to the applicant. The principal outstanding sum to the State Bank of India, as on 27.5.2016, was ₹ 31,23,57,256.63 apart from interest of ₹ 67,79,29,176/-. State Bank of India took symbolic possession of the secured assets of the applicant company. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation 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 of India. The applicant filed various documents relating to the proceedings before BIFR and the copies of documents relating to the action taken by the State Bank of India under the provisions of the SARFAESI Act. The applicant, in evidence of default, filed copies of sanction letters and recall notices issued by the Bank. The applicant also filed the relevant books of account of the applicant company along with audited financial statements for the last two financial years and provisional financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning 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 file this application under Section 10 of the Code to trigger Insolvency Resolution Process. The main objection raised by the Financial Creditor is that proceedings are pending before the Debt Recovery Tribunal and the Financial Creditor has taken possession of the secured assets of the applicant company and that they are at the stage of auctioning those properties. The pendency of proceedings in any other forum under any other Act is not a bar for initiation of Corporate Insolvency Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udicating 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 application is complete. The applicant has recommended name of Interim Resolution Professional. The applicant has also filed written communication given by the proposed Interim Resolution Professional. The applicant is admitting the existence of financial debt and occurrence of default in payment of financial debt. The books of account of the applicant company also substantiate the same. 12. In view of the above discussion, the application filed by the Corporate Applicant (Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 assets or any legal right or beneficial interest therein; (iii) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (iv) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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