TMI Blog2017 (8) TMI 1371X X X X Extracts X X X X X X X X Extracts X X X X ..... be appointed as Interim Resolution Professional. The petition filed by the financial creditor under Sec. 7 of the Insolvency & Bankruptcy Code, 2016 is hereby admitted for initiating the Corporate Resolution Process and declare a moratorium and public announcement as stated in Sec. 13 of the IBC, 2016. The moratorium is declared for the purposes referred to in Sec. 14 of the Insolvency & Bankruptcy Code, 2016. - cp (1B) No.363/KB/2017 - - - Dated:- 23-8-2017 - Vijai Pratap Singh, J. For the Petitioner: Mr. Ranajit Chowdhury, Advocate; For the Respondent: Mr. Anirban Majurndar, Advocate ORDER The Applicant Punjab National Bank (PNB) has filed an application under Sec. 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as I B Code, 2016) read with Rule 4 of the Insolvency Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against Divyajyoti Sponge Iron Pvt. Ltd., a debtor. 2. The brief facts of the case, as stated in the application, are that Punjab National Bank is a corporate body constituted under the Banking Companies Act, 1956, Identification No. is AAACP0165G. Shri Achyut Banerjee has filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... othecation) and Term Loan Account, duly certified under the Banker Book Evidence Act, in support of its claim which is annexed to the petition as Annexure L and L/ I from page 248 to 268. 8. The account of the corporate debtor was declared as Non-Performing Asset by PNB on 30/6/2012 along with other lender and called up the advances and issued notices under Sec. 13(2) of the SARFAESI Act, 2002. Copy of the notice issued by the applicant is annexed with the application as Annexure K at page 245. 9. The petitioner has also proposed the name of Mr. Arun Kumar Gupta, Registration No. is IBBl/1PA-001/1P-P00013/2016-2017/0037 of P-15, Bentick Street, Kolkata - 700 001 to act as interim resolution profeysional, The petition has been verified by Mr. Achyut Banerjee, Chief Manager, Punjab National Bank. The petitioner has stated that he has been authorized on the basis of Inter-Office letter dated 24/5/2017 issued by the Deputy Circle Head of the applicant bank. It is mentioned in the said Inter-Office letter that. I hereby authorized and permitted to initiate the proceeding under IBC in the A/c of M/S Divya Jyoti Sponge Iron Private Limited and do all the necessary identic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e letter shows that corporate debtor in reply to the notice received under I B Code, 2016 has informed to the financial creditor that after long discussion and based on the reports after the thorough inspection by PNB[SL and MSME had issued that the business conducted by my client is very much viable. That thereafter a proposal of restructuring was also submitted to your concern which was duly accepted and till date the confirmation of such proposal is pending before your esteemed good office. [t is further written in the reply that It is also obvious to state that your notices dated 11/9/2013 and 19/2/2017 demanding the whole amount overlooking the matter of records is mala fide and arbitrary. The objective of the financial creditors governed by the Reserve Bank of India Rules and Regulations is to 'save companies, preserve business and improve returns' but your arbitrary and whimsical acts are completely against such rules and guidelines enshrined therein. The corporate debtor has also stated after declaring of the said loan account of the applicant as NPA. Consequently, the said notice is itself bad in the eye of law because of the unclassified debts as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, Divya jyoti Sponge Iron Pvt. Ltd. 19. It also appears from the record that in compliance of direction of Hon ble NCLAT in the case of ICICI Bank vs. Innoventive Industries Ltd. notice was to be served on the corporate debtor on 14/7 / 2017 and affidavit along with a copy of notice has been filed by the applicant financial creditor and it is also pertinent to mention that corporate debtor was given opportunity to file reply and he has filed reply and after hearing at length order has been passed. 20. Petitioner's claim is fully supported by the bank statement which has been certified under Banker Book of Evidence Act. On the basis of the statement of account, it is clear that corporate debtor has committed default of ₹ 29,33,65,793.94 up to 15/5/2017. 21. Ld. Counsel for the corporate debtor has mainly led emphasis on the fact that financial creditor had issued notice under Sec. 13(2) of the SARFAESI Act on 11/9/2013 so it has no right to initiate a proceeding under I B Code, 2016. The above objection is without any basis. Even after receiving the demand notice, the corporate debtor failed to make payment and thereby committed default. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the Corporate Resolution Process and declare a moratorium and public announcement as stated in Sec. 13 of the IBC, 2016. The moratorium is declared for the purposes referred to in Sec. 14 of the Insolvency Bankruptcy Code, 2016. The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for the submission of claims under Sec. 15. The public announcement referred to in clause (b) of sub-section (1) of Insolvency Bankruptcy Code, 2016 shall be made immediately. Moratorium under Sec. 14 of the Insolvency Bankruptcy Code, 2016 prohibits the following: 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, arbitration panel or other authority; b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; c) 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 Securit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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