9911796707
TMI Blog2017 (5) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the prayer made. 2. The Corporate Debtor is a private limited company having been incorporated on 26.07.2013. Its authorized and paid up share capital is Rs. 1,00,000/- divided into 10,000/- shares of Rs. 10/- each. 3. The Corporate Debtor has been engaged in the business of trading and dealing with all kinds of fabrics and textiles. During the course of his business, it availed loans from financial institutions to meet the exigencies of its business requirements, which have now culminated in a huge financial debt. It is averred that due to their ongoing financial crises, the Corporate Debtor is unable to repay its total Financial Debt of Rs. 97,47,267/- and a total Operational Debt of Rs. 68,88,034. In view of their inabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. A perusal of the Financial Statements on record does not satisfy this Bench that the facts of this case call for the relief prayed. There are recoverables by the Corporate Debtor for which no steps have been taken to mobilize. Initiation of some recovery process could have made a substantial difference to the financial health of the company. Though the details of the Financial and Operational Creditors have been given, no claim has been made against it by any of its creditors, and therefore it cannot be said that the Corporate Debtor be declared to be in "Default". 7. The object of the Code is to trigger a Resolution process so that the assets of the Corporate Debtor do not depreciate, dissipate or disintegrate into total disarray and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial debts with no reasonable explanation why they have not been invoked till now. 8. The Petitioner has failed to produce any evidence to show that a claim has been lodged with the Petitioner Corporate Debtor and is lying unpaid. However Ld. Counsel for the petitioner presses his argument that on the petitioner's showing that if a liability exists as per balance sheet of the Petitioner and the Corporate Debtor is unable to liquidate its liability, the Code provides for the insolvency resolution to be set in motion. 9. We are unable to agree with the Id. Counsel for the applicant. It could never have been the intention of the legislature to consider a matter as serious as placing the Company in the hands of a Resolution professional ..... X X X X Extracts X X X X X X X X Extracts X X X X
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