TMI Blog2018 (3) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and insolvency proceedings under the Code. Hence, the objections raised by the financial creditor cannot sustain. The present application is complete and that the applicant corporate debtor has committed a default. Therefore, as the application is complete the present application is admitted under section 10 (4) (a) of the Code. The corporate insolvency resolution process shall commence from the date of this order under sub-section 5 of Section 10 of the Code. - Company Petition No. (IB)-432(ND)/2017 - - - Dated:- 16-2-2018 - MS. INA MALHOTRA AND MR. S.K. MOHAPATRA, JJ. For The Applicant Company : Mr. Sanjay bhatt, Advocate For The Financial Creditor : Mr. Vijay Kumar, Advocate ORDER S. K. Mohapatra, Member 1. This is an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 (for brevity the Code ) read with rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity the Rules ) for initiation of Corporate Insolvency Resolution Process in respect of the applicant company itself. 2. The Applicant, M/s. Miditech Private Limited is a company incorporated on 31.07.1997 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Process in respect of itself on account of default in payment. In the present case the Authorised representative of the applicant company duly authorised to do so has filed the instant application under Section 10 of the Code on behalf of the applicant company. 6. It is stated in the application that the applicant company had availed various credit facilities from Canara Bank and Jupiter Capital Private Limited in the form of loan and working capital limits and unsecured loan etc. It is submitted that initially the Corporate Applicant had maintained all the accounts regular and was releasing the payment as per the terms of the loan agreements. In the year 2008 there was an economic slowdown affecting the business worldwide and affected the business of applicant also. In view of various reasons behind the control of the Corporate Applicant it suffered losses and was not able to service interest dues to the bank and accordingly the applicant committed default. 7. It is contended that in view of non-payment of monthly interest overdue, the financial creditor raised its demand notice on 23.02.2015 and called upon the applicant to clear its dues. Thereafter, the account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13. In view of the above it is clear that a default has occurred and the present application under Section 10 is complete and that the applicant is not ineligible under Section 11 of the Code. Further there is no dispute that the requirements prescribed under sub-section 3 (a) and (b) of Section 10 of the Code have also been complied with. 14. However before admitting matter, the objections raised by the financial creditor (Canara Bank) are discussed below. 15. It is the case of the Canara Bank that the applicant company has approached this court with unclean hands. It is submitted that the applicant company has diverted the loan amount to a related company. The financial creditor pointed out that in 2016 the applicant company has given a loan of ₹ 13,11,65,51,660.51 to its related company which stand as ₹ 12,98,11,566.51 in 2017. It is further pointed out that on perusal of the financial statement of Applicant Company it is revealed that a sum of ₹ 10,34,25,197.52 have been given to M/s. Alva Brothers Entertainment Private Limited, which is a holding company of Applicant Company. In addition it is pointed out that loans were also given to two other rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case, it has not been pleaded that the appellant -Corporate Debtor is ineligible in terms of Section 11 of the I B Code. The Adjudicating Authority has noticed unrelated facts which are not required to be disclosed in terms of Section 10 or Form 6 and as the case also relates to third party suit or proceeding, and not the Corporate Debtor. In the circumstances, the Adjudicating Authority was not correct in rejecting the application on the ground of suppression of relevant facts. 6. The Adjudicating Authority, having held that otherwise the application under Section 10 is complete and in absence of any ineligibility of appellant, it was incumbent on the part of the Adjudicating Authority to admit the appeal, having no jurisdiction to notice unrelated facts beyond the requirement under the I B Code and the Forms prescribed under the Adjudicating Authority Rules. 21. Similarly in the case of Unigreen Global (P.) Ltd. v. Punjab National Bank and Ors. in Company Appeal (AT) (Insolvency) No. 81 of 2017 Hon'ble NCLAT vide order dated 1st December, 2017 has held that: 23. Any fact unrelated or beyond the requirement under I B Code or Forms prescribed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; 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; recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 28. It is further directed that: The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period. The provisions of sub-section (1) of section 14 of the Code shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. 29. Mr. Gian Chand Narang, registration No. IBBI/IPA-002/IP-N00362/2017-2018/11031 is appointed as In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
