TMI Blog2018 (10) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... Adv. and Ms. Swaralipi Deb Roy, Adv. For The Respondent : Praveen, Adv. ORDER S.K. Mohapatra, Member 1. Loyz Oil PTE Limited, claiming as 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 respondent company M/s. Interlink Petroleum Limited, referred to as the corporate debtor. 2. The Respondent Company M/s. Interlink Petroleum Limited (CIN No. L23209 DL 1991 PLC219214) against whom initiation of Corporate Insolvency Resolution Process has been prayed for, was incorporated on 20.09.1991 having its registered office at 105, 1st floor, 389-A, South Ex-Plaza, Masjid Moth, South Extension, Part-II, New Delhi - 110049. 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 Reso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed to be in default : USD 1,02,50,000/-(USD One Crore two lac fifty thousand only) Date on which default occurred: 18.04.2018 (Date of email when applicant demanded payment and Corporate Debtor failed to pay) 7. It is the case of the applicant that the applicant extended loan to the respondent as External Commercial Borrowings [ECB] after obtaining the necessary permission and under approval from the Reserve Bank of India. 8. The applicant Financial Creditor had extended ECB of USD 12,50,000 and USD 90,00,000 respectively totalling to USD 1,02,50,000 to the Corporate Debtor. 9. It is submitted that the respondent has entered into two loan agreements dated 26.12.2012 and 23.05.2014 respectively for USD 12,50,000 and USD 90,00,000, and after receiving necessary ECB approval of RBI the same amounts were disbursed to the respondent in terms of the aforesaid agreements. Copies of loan agreement, request letters for approval and necessary approvals from RBI have been placed on record. 10. It is also the case of applicant that on 30.06.2016 the respondent company requested applicant to waive of the interest from the loan amount and the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15. In this regard it is seen that the respondent admitted the receipt of the debt amount as specified in the application. In any case the applicant has placed the concerned bank account statement in support of the contention that USD 12,50,000/- was disbursed on 23.1.2013 and USD 90,00,000/- was disbursed on 19.08.2014 in the account of corporate debtor. The copies of the loan agreements dated 26.12.2012 and 23.05.2014 have been placed on record duly executed by both the parties. Besides the audited financial statement of respondent corporate debtor for the Financial Year 2016-17 has been placed on record in support of the claim of financial debt outstanding from the corporate debtor. The respondent is said to have committed default when it has failed to repay the dues as per the loan agreement. Mere contention that the corporate debtor will clear the dues in future would not help the corporate debtor as admittedly default continues. Once there is a default in repayment of debt the applicant has a right to press for initiation of Corporate Insolvency resolution Process under the Code. 16. It is pertinent to mention here that the scheme of the Code provides for triggering the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SC 4532 at Para 19 has observed that: Once the adjudicating authority/Tribunal is satisfied as to the existence of the default and has ensured that the application is complete and no disciplinary proceedings are pending against the proposed resolution professional, it shall admit the application. The adjudicating authority/Tribunal is not required to look into any other criteria for admission of the application . (Emphasis given) 21. The material on record clearly goes to show that respondent had availed the loan facilities and has committed default in repayment of the loan amount. An application under Section 7 of the Code is acceptable so long as the debt is proved to be due and there has been occurrence of existence of default. What is material is that the default is at least 1 lakh. In view of Section 4 of the Code, the moment default is of Rupees one lakh or more, the application to trigger Corporate Insolvency Resolution Process under the Code is maintainable. 22. It is seen that relevant bank account has been placed on record in support of the contention that loan was duly disbursed to the respondent company. Respondent has also admitted the fact of receipt of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptcy Code, 2016. 29. We also declare moratorium in terms of Section 14 of the Code. The necessary consequences of imposing the moratorium flows from the provisions of Section 14(1)(a), (b), (c) (d). 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. 30. It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Central Government or the supp ..... 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