TMI Blog2019 (4) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial debts to its Financial Creditors including the Central Bank. No other objection has been raised by the Financial Creditors or by any other person. The materials on record clearly establish that financial debt is due from the Corporate Debtor to the Financial Creditors and there is occurrence of debt by the Corporate Debtor in repayment of financial debt - this Adjudicating Authority is of the considered view that this is a fit case to admit the petition triggering Corporate Insolvency Resolution Process and accordingly this petition is admitted under Section IO(4)(a) of the Code. The Interim Insolvency Resolution Professional is hereby directed to cause a public announcement of the initiation of 'Corporate Insolvency Resolution Process' and call for submission of claims under Section 13(1)(b) read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Application disposed off. - C.P. No.(IB) 76/10/NCLT/AHM/2018 - - - Dated:- 19-2-2019 - Mr. Harihar Prakash Chaturvedi And Ms. Manorama Kumari, JJ. Advocate Mr. Rajesh Bohra is present for the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lution authorising the person submitting the application on behalf of the corporate applicant; (b) Name and address of the financial creditors; (c) Name and address of the operational creditors; (d) ledger account of the financial creditors evidencing the liabilities; (e) ledger account of the operational creditors evidencing the liabilities; (f) particulars of security held, date of its creation, its estimated value as per the creditor; (g) copy of ROC record confirming the charges of financial creditors; (h) details of statutory liabilities; (i) copy of notice u/s 13(2) 13(4) of SARFAESI Act, 2002 and possession notices issued by the financial creditors; (j) details of debts with associate parties; (k) details of contingent liabilities; (l) proof of serving of application to secured creditors/respondents; (m) audited balance sheet for the financial year 2015-16 2016-17; (n) provisional financial statements for the current financial year made up to date not earlier than fourteen days from the date of application. 9. The petitioner company has filed ledger account of the financial cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , there is no necessity for initiating corporate insolvency process in view of the fact that the corporate applicant is not functional/operative. Further it is submitted that State Bank of India had filed O.A. No. 45 of 2016 before Hon'ble Debts Recovery Tribunal - I (DRT-I), Mumbai against the corporate applicant and its guarantors for debt-claim of ₹ 69,23,76,228.51 that had been adjudicated in favour of respondent No. 1. It is further submitted that in order to frustrate lawful action pursued by respondent No. 1 for recovery of huge amounts defaulted since long time by inter-connected and inter related group of debtors. That, Corporate applicant has filed this application collectively and has initiated simultaneous proceedings before this Adjudicatihg Authority: - (i) Company Petition (1B) No. 75/2018 filed by M/S. UIC Corporation Private Limited (ii) Company Petition (1B) No. 77/2018 filed by M/S. API Industries Private Limited (iii) Company Petition (1B) No. 78/2018 filed by M/S. Hardik Industrial Corporation Private Limited 15. That, Central Bank of India has also filed reply. That, main objection of the bank is that corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n i.e. the debt is due and there is a default. Sub-Section (4) of Section is similar to that of Sub-Section (4) of Section 10. Therefore, we, hold that the law laid down by the Hon'ble Supreme Court in Innovative Industries Ltd. (Supra) is applicable for Section 10 also, wherein the Hon'ble Supreme Court observed as The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to the applicant to rectify the defect within seven days of receipt of a notice from the adjudicating authority. 21. In an application under Section 10, the financial Creditor or operational Creditor , may dispute that there is no default or 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporate Applicant/ Corporate Debtor and the application is otherwise complete. Non-mentioning of suit(s) pending between the parties cannot termed to be suppression of facts nor can be a ground to reject the application. In fact, once the application under Section 10 is admitted, all such related proceedings, including suits for recovery of moveable or immovable property of the Corporate Debtor and other proceeding cannot proceed further in any Court or Tribunal or Authority in view of order of 'moratorium' as may be declared under section 13 and prohibition that may be imposed under section 14 of I B Code. 25. Similarly, if any action has been taken by a Financial Creditor' under section 13(4) of the SARFAESI Act, 2002 against the Corporate Debtor or a suit is pending against Corporate Debtor under section 19 of DRT Act, 1993 before a Debt Recovery Tribunal or appeal pending before the Debt Recovery Appellate Tribunal cannot be a ground to reject an application under section 10, if the application is complete. 26. Any proceeding under section 13(4) of the SARFAESI Act, 2002 or suit under section 19 of the DRT Act, 1993 pending before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under Section 13(1)(b) read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 27. This Adjudicating Authority hereby order moratorium under Section 13(1)(a) of the 1B Code prohibiting the following as referred to in Section 14 of the Code; (a) the institution of suits or continuation of pending suits or proceedings against the Company/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 Company/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 Company/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 (54 of 2002); (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Comp ..... 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