TMI Blog2018 (6) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... beniwal, Advocate For The Respondent : Mr. Santosh Ram, Advocate ORDER S. K. MOHAPATRA, MEMBER 1. M/s. Asset and Reconstruction Company (India) Limited, claiming to be the financial creditor, has filed the instant application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for brevity the Code ) read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity the Rules ) with a prayer to trigger Corporate Insolvency Resolution Process in respect of M/s. Rustagi Impex Private Limited, referred to as the corporate debtor. 2. The Respondent Company M/s. Rustagi Impex Private Limited (CIN U74899DL1983PLC16239) against whom initiation of Corporate Insolvency Resolution Process has been prayed for, was incorporated on 28.07.1983 having its registered office at 62, Najafgarh Road, New delhi-110015. Since the registered office of the respondent corporate debtor is in New Delhi, this Tribunal having territorial jurisdiction over the NCT of Delhi is the Adjudicating Authority in relation to the prayer for initiation of Corporate Insolvency Resolution Process in respect of respondent corporate debto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Debtor approached the Karnataka Bank Limited to avail various loan facilities. Consequently Karnataka Bank Limited sanctioned credit facilities to the respondent Corporate Debtor on 04.04.2008. It is submitted that Karnataka Bank had sanctioned two term loans and other financial facilities to respondent corporate debtor and respondent corporate debtor executed hypothecation deeds, guarantee deeds in favour of Karnataka Bank to secure the loan facilities. 8. Respondent Corporate debtor had availed loan and financial facilities from Karnataka Bank but failed to maintain its loan account and the account of respondent corporate debtor was declared NPA on 03.10.2010. 9. The respondent then made a reference before Board for Industrial and Financial Reconstruction (BIFR) vide reference Case No. 64 of 2010. 10. Copy of acknowledgement of debt has been placed on record in support of the contention that the respondent corporate debtor had acknowledged the debt of Karnataka Bank vide letters dated 14.01.2011 and 12.10.2011. 11. Subsequently Karnataka Bank Limited assigned and transferred its financial debt outstanding from respondent, in favour of applicant vide assignment agre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itor that there is a default amount of ₹ 108,69,63,762/- (Rs One hundred eight crore sixty nine lakhs sixty three thousand seven hundred sixty two) has been denied by the respondent corporate debtor. 16. Learned counsel for the respondent further argued that the evidences on record submitted by the applicant creditor to claim default of a sum of ₹ 108,69,63,762/- are disputed. That apart the interest rates as claimed are disputed as the same was never agreed. 17. In this regard it is seen that applicant has placed on record loan agreements, various documents whereby the loan has been secured, relevant ledger account including the acknowledgement of debt. Respondent company has clearly acknowledged the debt on 14.01.2011 and also on 12.10.2011. There is also no dispute that the accounts of corporate debtor became NPA on 03.10.2010 and in the same year corporate debtor had made a reference to BIFR vide case No. 64 of 2010. In the rejoinder filed by the applicant on 14.03.2018 it is stated that Corporate Debtor has admitted that even dues of the Financial Creditor were envisaged in the revival scheme under consideration before the BIFR, which in itself is sufficient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Debtor has never disputed the assignment and in fact recognized the financial Creditor as assignee of Karnataka Bank Limited as evident from subsequent events and the conduct of the Corporate Debtor. It has been clarified that there has been reference of two dates in respect of the assignment agreement in question i.e. Assignment Agreement is dated 14.03.2013 and date of registration is 28.05.2013, which is quite evident from the receipt and certificate issued by the sub-divisional registrar, Bhiwadi and therefore both the dates are valid dates. It is submitted that mentioning of two dates does not raise any question on existence of the assignment, which has been duly executed and acted upon by the parties. The contention of the applicant is self-explanatory and since the financial debt has been legally assigned and transferred to the applicant through valid assignment agreement, the applicant comes within the definition of financial creditor under sub-section (7) of Section 5 of the Code. 21. It is pertinent to note here that pendency of proceedings before DRT will not preclude the applicant to trigger corporate insolvency resolution process under Section 7 of the code. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a), (b), (c) (d) of the Code. Thus, the following prohibitions are imposed: (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 Securitisation 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. 29. It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Central Government or the supply of the essential goods or services to the Corporate Debtor as may be specified, are not to be terminated or suspended or interrupted during the moratorium period. 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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