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2019 (4) TMI 920

s, 2016 - HELD THAT:- On perusal of the petition goes to show that it is complete in all respect. Further, admittedly, M/S. UIC Corporation Private Limited is liable to pay financial debt to its financial creditors including State Bank of India and Union Bank of India. No other objection has been raised by the financial creditors. The material on record clearly establish the financial debt is due from the corporate debtor to financial creditor and occurrence of debt by the corporate debtor in payment of financial debt. Under Section 10 of the Code the Adjudicating Authority is not empowered to go beyond the record as prescribed under section 10 and the information is required to be submitted in form 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 subject to ineligibility prescribed under Section Il and if all the information is provided by the corporate debtor as also the mandatory requirements under Section 10 and form No. 6 are complete then it is to be admitted if otherwise not ineligible under Section Il. Admittedly, M/S. UIC Corporation Private Limited is liable to pay financial debts to its Financial Creditors including the Union B .....

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st address of the Directors of the corporate applicant is placed at page No. 8 to the application marked Annexure IA. In all, there are, eight shareholders of the company as per the list of shareholders placed at page No. 40 to the application marked Annexure- 3. 5. It is further submitted by the corporate debtor that the applicant company has the following Financial Creditors; 6. It is further submitted that the following are the unsecured financial creditors; 7. It is also stated that there are Operational Creditors to the extent of ₹ 6,32,38,327.00 as per the details provided at Annexure - 8 placed at page No. 55. The corporate debtor also stated that the Company is having Statutory Liabilities to the extent of Rs. as on 27.01.2018 as per details given at Annexure - 12 placed at page No. 117 of the application. The applicant also stated that the company is having contingent liabilities to the extent of Rs. as also reflected in Annexure - 21 placed at page No. 205 of the application. It is further stated that Department of Value Added Tax, Dadra & Nagar Haveli issued a Notice under Section 13(2) of the SARFAESI Act, 2002 for non-submission of declaration forms against t .....

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16, as prescribed under the Rules of Insolvency & Bankruptcy Code. 11. The applicant company has given the names and addresses of the financial creditors, operational creditors of the company and details of dues outstanding to them and also particulars of the security created on the assets of the company. Despite the details given above, the applicant company has disclosed the debts owed to the company as well as the company owed to others. 12. On filing of Application, Notice was given to the Financial Creditors. In response to the Notices, Union Bank of India and State Bank of India appeared through their Learned Counsel. 13. That the Union Bank of India by reply dated 02.04.2018 stated that the account of corporate debtor was declared as Non-Performing Asset (NPA) on 30.09.2014. That the bank has detected some fraud in the account of the corporate debtor company and has reported the same to RBI for the purpose of filing a complaint before CBI against the company and its directors. 14. That in view of the above, this Tribunal, vide order dated 22.062018, directed Union Bank of India to furnish detailed particulars about the directions, if any, made by RBI. 15. That Union Bank .....

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imited Vs Punjab National Bank & Others in Company Appeal (AT) (Insolvency) No. 81 of 2017, wherein, it was held that . 20. Under both Section 7 and Section 10, the two factors are common 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 .....

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mission of an application under section 10, if al/ the information in terms of Section 10 of the I & B Code and Form 6 has been supplied by a 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 .....

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ings 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 Company/ corporate debtor. (i) There shall not be any interruption, suspension or termination of supply of essential goods or services to the Corporate Debtor during the moratorium period. (ii) The order of moratorium is not applicable to the transactions that may be notified by the Central Government in consultation with any financial sector regulator. (iii) The order of moratorium comes into force from the date of receipt of authenticated copy of the order till the comp .....

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