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M/s. Socrato Capital Private Ltd. Versus Anil Limited

2017 (9) TMI 857 - NATIONAL COMPANY LAW TRIBUNAL, AHMEDABAD

Initiation of Insolvency Resolution Process - eligible financial debt - Held that:- A perusal of the legal notice got issued by the Applicant and the statutory notice issued by Applicant clearly goes to show that Applicant recalled the entire loan amount both from the Principal Borrower and the Guarantor and both of them failed to repay the loan amount. The liability of the Respondent being a Guarantor is co- extensive with the liability of the Principal Borrower. The debt due to the Applicant F .....

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Respondent stated that they are making every effort to settle with all the creditors by making payments in due course of time. In view of the above discussion, the Application filed by the Applicant, M/s. Reliance Commercial Finance Ltd., i.e., CP (IB) No. 66 of 2017 deserves to be admitted, and it is accordingly admitted under Section 7(5) of the Code. - Considering the fact that the financial debt due to the Financial Creditor, M/s. Reliance Commercial Finance Limited is higher than the d .....

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istration No. IBBI/IPA-001/IP-P00091/2017- 2018/10191, as 'Interim Resolution Professional', because his Written Communication is available. This Adjudicating Authority hereby declares moratorium under section 13(1)(a) of the Code prohibiting as laid down in section 14 of the Code. The Interim Resolution Professional appointed shall also make public announcement about initiation of 'Corporate Insolvency Resolution Process', as required by Section 13(l)(b) of the Code. - C.P. (I.B.) NOS. 66/7/NCL .....

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of the Insolvency and Bankruptcy Code, 2016 [ IB Code for short] read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, [ Adjudication Rules for short] in Form-1 against one Company, M/s. Anil Limited. Hence, all the four Applications are being disposed of by this Common Order. 2. M/s. Reliance Commercial Finance Limited styled itself as 'Financial Creditor' in CP (IB) No. 66 of 2017. 3. The said Company gave General Power of Attorney to Sh .....

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ower). M/s. Anil Nutrients Ltd executed various documents in favour of M/s. Reliance Capital Limited, which include Working Capital Agreement, Deed of Hypothecation, Demand Promissory Note, etc. 4.2 M/s. Anil Limited, Respondent herein stood as Corporate Guarantor to the Facility Agreement or the Working Capital Agreement dated 31.12.2014 made between M/s. Reliance Capital Ltd., and M/s. Anil Nutrients Ltd and thereby Respondent herein (Anil Ltd.) became a Guarantor to the loan borrowed by M/s. .....

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tor for the loan borrowed by M/s. Anil Nutrients Ltd, from M/s. Reliance Capital Limited. 4.4 M/s. Anil Nutrients Ltd and M/s. Anil Limited did not care to make repayment of the loan amount as per the agreed terms and conditions inspite of repeated requests and reminders made by M/s. Reliance Capital Ltd., and as well as by the present Applicant. M/s. Anil Nutrients Ltd and M/s. Anil Limited have failed and neglected to pay the outstanding amount. Applicant got issued a legal notice dated 28.9.2 .....

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hin the definition of 'Financial Debt' as provided under Clause (i) of sub- section (8) of Section 5 of the IB Code. 4.6 Applicant issued statutory notice dated 31.12.2016 to M/s. Anil Nutrients Ltd, and M/s. Anil Limited, Respondent herein, calling upon them to pay the outstanding amount of ₹ 8,87,94,014/- within 21 days. Respondents received the said notice but did not choose to pay the amount. Applicant came to know that Respondent Company owes huge amount of monies not only to .....

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ts. Applicant in Form-1 Part III mentioned Shri Subodhkumar Bajranglal Kedia as 'Interim Resolution Professional' but filed Written Communication of Shri Pramod Bajranglal Kedia, as Interim Resolution Professional. Applicant filed proof of despatch of the Application to the Respondent by Speed Post. This Adjudicating Authority directed the Applicant to issue notice of date of hearing and file proof of service. Accordingly, Applicant issued notice of date of hearing and filed proof of ser .....

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clearly goes to show that M/s. Anil Limited (Respondent herein) stood as a 'Guarantor' for the loan availed by M/s. Anil Nutrients Ltd, from M/s. Reliance Capital Limited, as a result of Scheme of Demerger by which one financial unit was merged with M/s. Reliance Commercial Finance Ltd, vide Guarantee Agreement dated 31st December, 2014. 6. In an application under Section 7 of the Code, this Adjudicating Authority is required to ascertain existence of default from the records of informat .....

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judicating authority' on receipt of application under sub-section (2) is required to ascertain existence of default from the records of Information Utility or on the basis of other evidence furnished by the financial creditor under sub-section (3). Under Section 5 of Section 7, the 'adjudicating authority' is required to satisfy - (a) Whether a default has occurred; (b) Whether an application is complete; and (c) Whether any disciplinary proceeding is against the proposed Insolvency .....

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t the amount of any liability in respect of any of the guarantee or indemnity for any of the items referred to in sub-clauses (a) to (h) of sub-section (8) is a 'financial debt'. Therefore, the debt due from M/s. Anil Nutrients Limited to the Applicant is a 'financial debt' within the meaning of Clause (i) of sub-section (8) of Section 5. Respondent, being a Corporate Guarantor, is liable to pay the outstanding loan amount to the Financial Creditor, the present Applicant. 8. A pe .....

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o show that there is occurrence of default in repayment of the financial debt by the Respondent herein, being the Guarantor. 9. The Application filed by M/s. Reliance Commercial Finance Limited is complete in all respects and no defect is pointed out. 10. In this Application filed by M/s. Reliance Commercial Finance Ltd., Respondent did not choose to file any objections. Learned Counsel appearing for the Respondent stated that they are making every effort to settle with all the creditors by maki .....

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Authorised Representative to file this Application by way of a Board Resolution. 13. Applicant herein had earlier filed Company Petition (IB) No.26/7/NCLT/AHM/2017 against the Corporate Debtor under Section 7 of the IB Code. The said Application came to be withdrawn by the Applicant on the ground that there was a settlement between the Financial Creditor and the Corporate Debtor, as can be seen from the Affidavit at Page No. 13 which is filed in CP (IB) No.26 of 2017. It appears that the Respond .....

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ring the cheques. It is the case of the Applicant that Corporate Debtor took a loan of ₹ 42 lakhs and failed to repay the said amount and the amount claimed in default is ₹ 42,00,000/-. Applicant filed Computation Table of outstanding amount along with interest. 14. In this Application, Applicant despatched copy of the Application to the Corporate Debtor and filed proof of despatch and as well as proof of service. This Adjudicating Authority directed the Applicant to issue notice to .....

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dent did not dispute the default in payment of debt due to the Applicant. The Application is complete in all respects. Applicant proposed the name of Mr. Umesh Ved as Interim Resolution Professional' and filed his Written Communication. Hence, the Application deserves admission under Section 7(5) of the IB Code. Accordingly, it is admitted. C.P. No.(IB) 70/7/NCLT/AHM/2017: 16. M/s. Oarsman Credit Private Ltd., filed CP (IB) No. 70 of 2017 through Authorised Person, Mr. Jay Prakash Yadav who .....

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unt due but not paid in a tabular form. Applicant filed Bank Statement of Account of Applicant Company for the period from 12.01.2017 to 06.6.2017 along with Certificate of the Banker under Bankers' Books Evidence Act. Applicant also filed a letter dated 10.5.2016 addressed by the Corporate Debtor to the Applicant enclosing two post-dated cheques by way of security towards repayment of deposit accepted from Applicant Company. Applicant/Financial Creditor also filed Promissory Note dated 10.5 .....

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time is granted. 18. Heard the arguments of the learned counsel appearing for the Applicant and the learned counsel appearing for the Respondent. The documents filed by the Applicant clearly establish that the financial debt is due from the Corporate Debtor to the Applicant/Financial Creditor. The documents filed by the Applicant also show that the Corporate Debtor committed default in repayment of the financial debt due to the Financial Creditor. The Application is complete in all respects and .....

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ugh its Authorised Representative, Mr. Jay Prakash Yadav, under Section 7 of the IB Code read with Rule 4 of the Adjudication Rules for initiating Corporation Insolvency Resolution Process against the Corporate Debtor, Anil Limited. It is the case of the Applicant that Corporate Debtor borrowed an amount of ₹ 35 lakhs on 10.5.2016 and it was renewed for the period from 09.8.2016 to 16.11.2016. It is also the case of the Applicant that Applicant transferred the amount through 'RTGS' .....

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Limited. Applicant also filed Statement of Account of the Applicant Company. A perusal of the above documents show that the financial debt is due from the Corporate Debtor to the Applicant and the Corporate Debtor has committed default in repayment of the said financial debt. 20. Learned Counsel appearing for the Respondent did not dispute the default committed in repayment of financial debt due to the Applicant/Financial Creditor. Applicant/Financial Creditor proposed the name of Mr. Umesh Ved .....

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'Pramod Bajranglal Kedia as 'Interim Resolution Professional'. The financial debt due to the Applicant in CP (IB) No. 66 of 2017 is ₹ 8,87,94,014/-, which is far higher than the total financial debt due to all the three other Applicants /Financial Creditors. 22. Therefore, in the given facts and circumstances of the case, and considering the fact that the financial debt due to the Financial Creditor, M/s. Reliance Commercial Finance Limited is higher than the debts together due .....

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tion No. IBBI/IPA-001/IP-P00091/2017- 2018/10191, as 'Interim Resolution Professional', because his Written Communication is available. 23. This Adjudicating Authority hereby declares moratorium under section 13(1)(a) of the Code prohibiting the following as laid down in section 14 of the Code; (a) 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, arbitr .....

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