TMI Blog2018 (10) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... M.M. KUMAR, PRESIDENT The instant petition has been preferred under section 10 of Insolvency and Bankruptcy Code, 2016 (for brevity the Code ) with a prayer to initiate Insolvency Resolution Process against the applicant company and for issuance of directions activating the moratorium under section 14 of the Code. 2. The applicant was incorporated under the provision of the Companies Act, 1956 on 28.09.2007 primarily with the object of entering the business of manufacturing exporting of fruit pulp, drinks and concentrates. The identification number of the applicant is CIN-U51909DL2007PLC168784 and its registered office is situated at K-336, Pocket-K, Sarita Vihar, New Delhi-110076. Its authorised share capital is ₹ 55000000/- and paid up share capital is ₹ 18391500/-. Mr. Asit Das, Senior Manager (Legal) of the applicant company who has been authorized by the Board Resolution dated 30.01.2018 (Annexure-C) to sign and submit the petition. 3. The case of the applicant is as under: - 3.1 It has two financial creditors namely Oriental Bank of Commerce and Kotak Mahindra Prime Limited who had provided the credit facility for its business and also for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and supplier factory which has duly booked and amount paid in advance to the supplier was spoiled and turned into scraped goods as these are perishable goods and has short shelf life. 3.6 The Corporate applicant has proposed the name of Shri Sumit Shukla, B-4/702, Krishna Apra Gardens, Plot No. 7, Vaibhav Khand, Indirapuram, Ghaziabad-UP, email id - sumit_shukla@rediffmail.com. His registration number is IBBI/IPA-003/IP-N00064/2017-18/10550. A written communication dated 26.02.2018 sent by Mr. Shukla in terms of Rule 9(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 has also been placed on record. There is a declaration made by him that no disciplinary proceedings are pending against him in Insolvency and Bankruptcy Board of India or Insolvency Professional Agency of Institute of Cost Accountants of India. In addition, further necessary disclosures have been made by Mr. Shukla, as per the requirement of the IBBI Regulations. Accordingly, he satisfies the requirement of Section 7(3)(b) of the Code. 3.7 Subsequently the Corporate applicant vide diary No. 1485 dated 19.03.2018 filed additional affidavit whereby it has submitted a list of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hypothecation of Vehicle. vii. EQM of Motor Vehicle, Registration Number:-DL1LV 6009, Automobiles - Multi Utility Vehicle - Maruti Suzuki India Limited - Maruti EECo Flexi, Registered in the Name of SSMP Industries Limited. Kotak Mahindra Prime Limited Hypothecation of Vehicle. 4. In response to notice of motion having been issued, the Oriental Bank of Commerce as well as Kotak Mahindra Prime Limited have filed their reply separately. 5. The Oriental Bank of Commerce in its reply has asserted that the cash credit facility including other facilities were granted to the Corporate applicant vide sanction letter dated 16.12.2015 (Annexure-G). Afterwards Corporate applicant defaulted in making payment of loan/financial facilities and therefore, its account was declared NPA. Subsequently a demand notice dated 21.09.2017 was issued demanding a sum of ₹ 13,52,60,519.10 as on 31.03.2017 with interest and other charges. Since the corporate applicant failed to comply with the said demand notice, the Bank proceeded to take action under the SARFAESI Act, 2002. 5.1 The Oriental Bank o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e objects discloses that the provisions of IBC, 2016 have predominantly been brought into force for the re-organization and insolvency resolution of corporate persons and that too in a time bound manner for the maximization of value of assets of such persons to promote entrepreneurship and balance the interest of all stakeholders involved in relation to the insolvent. 10. The scheme of the act provides for triggering the insolvency resolution process by three categories of persons, namely, (a) Financial creditor (b) Operational creditor, and (c) by the corporate debtor itself (section 10) The procedure in relation to the initiation of corporate insolvency resolution process by the corporate debtor is delineated under Section 10 of IBC, 2016 wherein a corporate debtor is required to furnish information in accordance with Form-6 of the Insolvency Bankruptcy (Adjudicating Authority) Rules, 2016 (hereinafter referred as AA) Rules, 2016. Under Form-6, a corporate debtor is required to disclose amongst others, the details of the corporate debtor including the date of incorporation as well as the details of financial creditor and operational creditors to whom the corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w along with the total debt raised and the amount in default as admitted by the corporate debtor itself. Those details are as under:- List of Financial Creditors : Name of the Financial Creditors Address of the Financial Creditors Total debt raised and amount in default (In Rs.) Date when the financial dept was incurred Oriental Bank of Commerce M Block, Connaught Place, New Delhi-110001 13,65,00,000.00/- (debt raised) 12,79,61,046.10/- (default amount) 16.12.2015 Kotak Mahindra Prime Limited 101-104, DDA District Centre, Near Scope Minar, Laxmi Nagar, Delhi-110092 16,38,903.60/- (debt raised) 11.01.2015 21.05.2015 It is evident from the above details that the corporate debtor owes to the Financial Creditors more than a sum of ₹ 13.75 crores. 12.3 A perusal of Part-III of the petition discloses that the details of statutory dues have also been attached at Annexure-E which are also in the form of table. The same reads as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Impex Services India Pvt. Ltd. 11,25,672.31 27 DSIIDC Maintenance Services Limited 1,18,908.26 28 Tata Power Delhi Distribution Limited 1,12,880.00 29 Raj Automobiles 53,959.87 30 Mahalaxmi Polymers 6,15,064.00 31 Tauras Packaging Pvt. Ltd. 4,58,243.00 32 Jindal Biochem Pvt. Ltd. 2,65,920.00 33 Munish Sharma, Partner of M/s. Trendz Furniture 2,21,426.00 2,36,43,798.92 12.4 A record of default is available with the Credit Information Bureau (India) Limited (CIBIL) as per its commercial credit information report of the Corporate applicant based on report dated 07.02.2018 (at pgs. 208-256). Certificate of registration of charge issued by ROC has also been placed on record as Annexure-H. 13. The details given in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to be terminated or suspended or interrupted during the moratorium period. These would include supply of water, electricity and similar other supplies of goods or services as provided by Regulation 32 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 18. The Interim Resolution Professional shall perform all his functions religiously and strictly which are contemplated, inter alia, by Sections 15, 17, 18, 19, 20 21 of the Code. He must tread the path honestly and with conviction. He must follow best practices and principles of fairness which are to apply at various stages of Corporate Insolvency Resolution Process. His conduct should be above board independent; and he should work with utmost integrity and honesty. It is further made clear that all the personnel connected with the Corporate Debtor, erstwhile directors, promoters or any other person associated with the Management of the Corporate Debtor are under legal obligation under Section 19 of the Code to extend every assistance and cooperation to the Interim Resolution Professional as may be required by him in managing the affairs of the Corporate Debtor. In case there is any violation co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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