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TMI Blog2018 (5) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... t Ludhiana, Punjab and, therefore, the matter falls within the territorial jurisdiction of this Tribunal. 3. The Authorised Share Capital of the corporate debtor is 3 crores with 30,00,000 equity shares of 10/- each and Issued, Subscribed and Paid-Up Share Capital is 2,86,00,000/- with 28,60,000 equity shares of 10/- each. The Certificate of Incorporation of the corporate debtor is at Annexure VII(C) and Memorandum and Articles of Association is Annexure VII(B). 4. This petition has been filed by the corporate debtor through Mr. Sunil Kumar Singla, one of the Directors of the company who has been authorised to file this petition under Section 10 of the Code vide resolution dated 30.11.2017 Annexure VII(A). The contents of the application are supported by affidavit of Mr. Sunil Kumar Singla Annexure VIII(A) at page 774 of the paper book. There are 4 shareholders of the company, details of which are given in Sl.No.3 of Part I of the application and the Board of Directors of the company comprises of two Directors namely Mr. Karan Pratap Singla and Mr. Sunil Kumar Singla. 5. The corporate debtor has one secured Financial Creditor, namely, Allahabad Bank and the address of the financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and future. It is further stated that the corporate debtor also furnished securities to secure amount of loan. Mr. Sunil Kumar Singla, one of the Directors of the company created equitable mortgage deed of the plot measuring 771 square yards comprised in Khasra No. 85/22, 90/1-2/1,91/3-4-5-6-7-8- 15/1-16/2 Khata No. 215/226-413/426 as per Jamabandi for the year 2006-07 by deposit of title deed dated 20.12.2012. The aforesaid Director also created equitable mortgage of the land measuring 2 Kanals 16.5 Marlas (1708 sq. yards) in Khasra No. 90/1, 91/5, 90/2/1, 91/3-4-5-6-7-8- 15/1-16/2, 85/22 Khatta No. 413/426-215/226 as per the Jamabandi for the year 2006-07 by deposit of title deed dated 06.02.2012 and also land measuring 2208 sq. yards by deposit of title deed dated 16.11.2011. These mortgage deeds were created on 23.02.2015 by deposit of title deeds. 11. Personal guarantees were also furnished by Mr. Sunil Kumar Singla, Mr. Karan Pratap Singla and Mr. Viresh Pratap Singla for the outstanding dues of the bank. 12. Notice of his petition was issued to Allahabad Bank and other unsecured and unrelated creditors, namely, Archana Ahlawat, Vijay Kumar Mittal, Ravinder Bhargya and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case the agreement is registered, Allahabad Bank and ASREC (India) Ltd can bring this fact to the notice of the Interim Resolution Professional or Resolution Professional, as the case may be, in case the petition is admitted. The Interim Resolution Professional/ Resolution Professional would then proceed according to the said information. In view of the above, CA No. 69/2018 stands disposed of. 16. Learned counsel for the financial creditor has also referred to a letter dated 31.03.2017 (Annexure R-1 of the reply) issued by IndusInd Bank to Allahabad Bank stating that the corporate debtor had given a declaration to IndusInd Bank that the petitioner was not enjoying any credit facility with any other bank on the basis of which the IndusInd Bank opened account of the corporate debtor-petitioner. The said account is said to have been frozen by IndusInd Bank. However, this assertion would be insignificant in this case because the statement of account of corporate debtor maintained by IndusInd Bank shows the outstanding balance in the accounts of the petitioner as on 31.03.2017 as nil. If IndusInd Bank has any other action to take, that is a separate issue. 17. Learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that debt is not due and is not payable in law or in fact. They may also oppose admission on the ground that the Corporate Applicant is not eligible to make application in view of ineligibility under Section 11 of the I&B Code. The Adjudicating Authority on hearing the parties and on perusal of record, if satisfied that there is a debt and default has occurred and the Corporate Applicant is not ineligible under Section 11, the Adjudicating Authority has no option but to admit the application, unless it is incomplete, in which case the Corporate Applicant is to be granted time to rectify the defects. 22. Section 10 does not empower the Adjudicating Authority to go beyond the records as prescribed under Section 10 and the informations as required to be submitted in Form 6 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority) rules, 2016 subject to ineligibility prescribed under Section 11. If all informations are provided by an applicant as required under Section 10 and Form 6 and if the Corporate Applicant is otherwise not ineligible under Section 11, the Adjudicating Authority is bound to admit the application and cannot reject the application on any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g DRT Act, 1993; SARFAESI Act, 2002; money suit etc." "34. Further, as we find that the Adjudicating Authority has noticed the extraneous factors unrelated to the Resolution process not required to be disclosed in terms of Section 10 or Form 6 and as the suits referred to relate to dispute between third parties, and not the Corporate Debtor, we hold that the Adjudicating Authority erred in rejecting the application on the ground of suppression of facts." 20. We have perused the instant application filed in Form No.6 in terms of Section 10 of the Code and it is found complete in all respects. Section 10 of the Code reads as under : - "10. (1) Where a corporate debtor has committed a default, a corporate applicant thereof may file an application for initiating corporate insolvency resolution process with the Adjudicating Authority. (2) The application under sub-section (1) shall be filed in such form, containing such particulars and in such manner and accompanied with such fee as may be prescribed. (3) The corporate applicant shall, along with the application furnish the information relating to- (a) its books of account and such other documents relating to such period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of the Rules, the Corporate Applicant has to make an application under Section 10 of the 'Code' in Form 6 accompanied with documents and records required therein and as specified in IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Since we have already dealt in detail in the opening paragraphs supra of this order relating to information furnished, we are not repeating the same for sake of brevity, as the essential particulars as contemplated, have been provided by the Applicant. 24. The corporate debtor has filed financial statements for the financial years ending 31.03.2016 and 31.03.2017 and provisional financial statements for the period from 01.04.2017 to 28.11.2017 [Annexure V(A), V(B) and V(C) respectively], All these financial statements are duly attested by Mr. Sunil Kumar Singla, Authorised Representative of the corporate debtor. 25. It is represented by the learned counsel for the corporate debtor that as per the financial statements, following is the status of the corporate debtor under different heads :- Revenue from Operations: As on 28.11.2017- Rs. 33,75,187.67 As on 31.03.2017- Rs. 6,82,60,118.85 As on 31.03.2016- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the following as provided in section 14(1) 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, 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 Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 30. It is further directed that the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. The provisions of subsection (1) shall however not apply to such transactions as may be notified by the Central Government in consultation with any financial sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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