TMI Blog2017 (5) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... vil imprisonment on being declared Insolvent. Taking a hyper technical view of the provisions would open the flood gates of people forming Companies, incurring expenses in the name of the company and then filing for Insolvency Resolution Process under the Code for enjoying a Moratorium. The object of the Code is not to provide for an escape route to a Company or its Directors who have incurred great debts and are unable to liquidate the liabilities after availing services and goods (stock in trade) from various suppliers, loans from banks, friends and family. - Company Petition No. (IB)-78(ND)/2017 - - - Dated:- 15-5-2017 - MS. INA MALHOTRA, MEMBER (JUDICIAL) AND MR. S.K.MOHAPATRA, MEMBER (TECHNICAL) Shri. Simran Jyot Singh, Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed its audited financial statements for the financial year 2014-15 and 2015-16 in addition to the provisional statements till 15 April, 2017. The detailed statements of the financial debts and operational debts which find corroboration in the annual returns reflect the total outstanding in excess of ₹ 1.52 Crores reflecting the accumulated losses. The total receivables have also been reflected in the balance sheets also find a mention in the Financial Statements and are in excess of ₹ 1.2 Crores. 5. Given the facts of the case that the Corporate Debtor is unable to meet its financial obligations, Ld. Counsel for the applicant Corporate Debtor submits that the facts of the case meet all the requirements under the Bankruptcy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e must be hypothecated to the Bank and for any lapse, the Bank would initiate its own recovery proceedings. Apart from the sole charge over the vehicle, it can easily be repossessed by a Receiver appointed vide a simple application under sec 9 of the Arbitration Conciliation Act, as well as recovery made by invoking the personal guarantees offered. We do not need an insolvency professional to liquidate this asset for the Bank. We also do not have to appoint an insolvency Resolution professional to recover the moneys due to the Corporate Debtor from its own creditors. The expenses involved in the process would not justify the action which can easily be done by the Directors of the Corporate Debtor. Further there is no justification shown t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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