TMI Blog2020 (3) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... king to pay instalments, letter of hypothecation etc. are placed on record by the applicant bank. It is needless to add that all the above referred documents bear the stamp and signature of the corporate debtor. The Adjudicating Authority is of the considered view that there is a debt due to financial creditor and there is default on the part of the corporate debtor. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the application is complete in all respect and the Corporate Debtor committed default in paying the financial debt to the Applicant and the respondent company has acknowledged the debt - In the instant case, the documents produced by the Financial Creditor clearly establish the 'debt' and there is default on the part of the Corporate Debtor in payment of the 'financial debt'. The application under Section 7 (2) of the IB Code is complete in all respects and there is debt due to the financial Creditor and there is default on the part of the corporate debtor . Hence, there is no alternative but to admit the application in absence of any infirmity - the petitioner/financial credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. It is stated that the corporate debtor is in total default of ₹ 23,45,71,390.59 (Rupees twenty-three crores forty-five lakhs seventy-one thousand three hundred ninety and paise fifty-nine only) as on 28.02.2019 with further interest till payment and/or realisation. That, default occurred on 01.01.2016 on which the account was classified as Non-Performing Asset (NPA). That, the present Insolvency Resolution Application is filed under Section 7 of the IB Code, 2016 for the purpose of initiating corporate insolvency resolution process against the corporate debtor since it has lost its substratum and is unable to repay outstanding debt of more than ₹ 23,45,71,390.59 (Rupees twenty-three crores forty-five lakhs seventy-one thousand three hundred ninety and paise fifty-nine only). That, the corporate debtor has already committed default of its debt towards the financial creditor by non-payment of instalment and/or interest of the various financial facilities availed through its Ashram Road Branch, Ahmedabad, Gujarat State. 6. The applicant bank has submitted copy of the following documents in support of their claim:- Sl. No. Particul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 149-151 24 Memorandum of deposit of title deeds dated 03.09.2012 152-159 25 Balance confirmation dated 02.04.2013 160 26 Balance confirmation dated 15.10.2013 162 27 Balance confirmation dated 05.06.2015 163 28 Balance confirmation dated 20.05.2015 164 29 Balance confirmation dated 31.03.2017 165 30 CIBIL report dated 22.03.2019 166-209 31 Statement of accounts under the Bankers' Books Evidence Act 210-282 32 Notice under section 13(2) of the SARFAESI Act dated 27.06.2016 283-288 33 Notice demanding possession dated 02.01.2017 289-290 34 Memo of O.A. No. 470/2017 dated 18.08.2017 filed before DRT, Ahmedabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of having taken any loan from the applicant bank appears to be illusory, imaginary and not sustainable in the eyes of law when volumes of documents produced by the bank evidencing execution of documents like term loan agreement, demand promissory note, undertaking to pay instalments, letter of hypothecation etc. are placed on record by the applicant bank. It is needless to add that all the above referred documents bear the stamp and signature of the corporate debtor. 11. In view of the above discussions, the Adjudicating Authority is of the considered view that there is a debt due to financial creditor and there is default on the part of the corporate debtor. In view of the judgment of the Hon'ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank [2017] 143 SCL 625, the Hon'ble Supreme Court while explaining sections 7 and 8 of the IB Code, observed and held as under:- '27. The scheme of the Code is to ensure that when a default takes place, in the sense that a 'debt' becomes due and is not paid, the insolvency resolution process begins. Default is defined in Section 3 (12) in very wide terms as meaning non-payment of a debt once it becomes due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of the receipt of the application. It is at the stage of section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that the debt which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is complete, 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. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within seven days of admission or rejection of such application, as the case may be.' 12. It is also held in Mobilox Innovations (P.) Ltd. v. Kirusa Software (P.) Ltd. [2017] 144 SCL 37 (SC) as under:- 38 ..in the case of a corporate debtor who c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly establish the 'debt' and there is default on the part of the Corporate Debtor in payment of the 'financial debt'. 18. There is no dispute in the case that the petitioner is the financial creditor. The application is also furnished in the prescribed form - 1 of the Rules and the prescribed fee has also been paid. Along with the application, the applicant proposed the name of the Resolution Professional namely CMA George Samuel. The Adjudicating Authority hereby appoint CMA George Samuel, 9B, Vardan Tower, Nr. Vimal House, Lakhudi Circle, Ahmedabad 380 014 (E-mail ID gsforgs@gmail.com)' having Registration No. IBBI/IPA-003/IP-N00043/2017-18/10319 to act as an interim resolution professional. Form 2 of the proposed interim resolution professional has been annexed and placed at Page No. 513 of the application where declaration is made that no disciplinary proceeding is pending against him with the Board or Indian Institute of Insolvency Professionals of ICAI. 19. In the aforesaid background and as also discussed above, the application under Section 7 (2) of the IB Code is complete in all respects and there is debt due to the financial Creditor and there i ..... 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