TMI Blog2019 (7) TMI 1021X X X X Extracts X X X X X X X X Extracts X X X X ..... n. This application is complete and is admitted. - C. P. (IB)-No. 17 /JPR/ 2018. - - - Dated:- 17-5-2019 - DR. DEEPTI MUKESH Judicial Member Nandini Bhown and Shivangshu Naval , for the petitioner. Naresh Kumar Sejvani , for the respondent. ORDER This application is filed by Reliance Commercial Finance Ltd. (for brevity the applicant ) through its deputy manager legal Mr. Vijay Sharma who is duly authorized vide board resolution dated March 9, 2017 to file this application against the corporate debtor, Maximum Synthetic P. Ltd. (for brevity the corporate debtor ) under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 seeking initiation of the corporate insolvency resolution process (CIRP), pursuant to default in repayment of loan amount by the corporate debtor to the applicant. 2. The present applicant is a non-banking financial company (NBFC), incorporated under the Companies Act, 1956 on August 17, 2000 and duly registered with the Registrar of Companies, Mumbai having CIN U6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of the corporate debtor. Account details of the corporate debtor annexed at annexure 5. The entire loan was to be paid in 48 equal instalments of ₹ 1,65,094 each. The corporate debtor thereafter signed a demand promissory note and a letter of continuity for demand promissory note dated June 22, 2015 promising and assuring to pay the entire loan amount along with interest at 14 per cent. per annum as per the terms of the agreement. Copy of the demand promissory note and a letter of continuity for demand promissory note dated June 22, 2015 is annexed as annexure A8 and annexure A9. 6. It is further stated that an irrevocable power of attorney dated June 22, 2015 under the seal of the corporate debtor was executed authorising original lender Reliance Capital Ltd., to deal with machinery/equipment and exercise all rights in respect of the same. A copy of the power of attorney dated June 22, 2015 annexed as annexure A10. It is further stated that the corporate debtor vide a declaration dated December 10, 2015 authorized the original lender Reliance Capital Ltd., to raise debits in the account of the corporate debtor being a current account bearing Account Number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d., the original lender and not the present applicant and said loan facility has not been transferred/assigned to Reliance Commercial Finance Ltd., the applicant herein as per guidelines of the RBI as represented herein. A financial assets may be sold to the SC/RC by any bank/FI where the assets are : (i) An NPA, including a non-performing bond/debenture, and (ii) A standard asset where : (a) The asset is under consortium/multiple banking arrange ment, (b) At least 75 per cent. by value of the asset is classified as non performing asset in the books of other banks/FI, and (c) At least 75 per cent. by value of the banks/FIs who are under the consortium/multiple banking arrangement agree to the sale of the asset to SC/RC. (B) That the applicant has not filed an affidavit in support of the documents accompanied with application and therefore absence of the same no documents and records could be relied upon and taken on record. Further it is submitted that annexure 14 as mentioned in affidavit of the applicant is not accompanied with the application. (C) That specific power of atto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of attorney specially when it is executed for particular period. But said power stands cancelled/terminated only on the date of expiry mentioned or on death of such executant of power of attorney. The Power of Attorney Act also does not speak of such termination of power on resignation of executant and if such an argument is to be accepted it will lead to chaos in corporate/large institution where change/transfer of exec utives is not uncommon. 11. After hearing learned counsels for the parties and perusing the records annexed, it is seen that the corporate debtor has neither denied nor disputed the loan facilities given by the Reliance Capital Ltd. The corporate debtor has not brought forward any record with respect to the payment being made of the debt as claimed in the application. The only defence raised by the corporate debtor is with respect to two technical points : (i) the status of applicant is disputed as the financial creditor, (ii) the authority to file the present application is defective. 12. The argument of the corporate debtor cannot be accepted that the present applicant is not a financial creditor under the provisions of section 7 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the persons executing power of attorney shall end such powers. The respondent relied on two judgments one of the hon'ble National Company Law Appellate Tribunal in Palogix Infrastructure P. Ltd. v. ICICI Bank Ltd. [2018] 1 Comp Cas-OL 140 (NCLAT) and another judgment cited is of the National Company Law Tribunal, Kolkata Bench-(ICICI Bank Ltd. v. Palogix Infrastructure P. Ltd. [2018] 1 Comp Cas-OL 137 (NCLT)) dealing with the authorization giving special mentioned about initiating CIRP. Both these judgments in present case are of not much relevance since the issue herein is of the effect of resignation of person giving power of attorney. Hence, both the objections raised by the corporate debtor are not sustainable. 13. The registered office of the corporate debtor is situated within the territorial jurisdiction of this Tribunal. Hence this Tribunal has jurisdiction to entertain and try this application. 14. This application is complete and is admitted thereby IRP proposed by the financial creditor Mr. Rajeev Sharma having registration number IBBI/IPA- 001/IP-P00366/2017-18/10695 (e-mail : rajiv_sharmaadv@yahoo.co.in, Mobile No : 93 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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