9911796707
TMI Blog2020 (6) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... e ground that the Company has become insolvent with a debt of Rs. 49,97,96,558/- (Rupees Forty Nine Crores Ninety Seven Lakhs Ninety Six Thousand Five Hundred and Fifty Eight only) with mere current assets are to the extent of INR 65,000/ 2. Brief facts of the case, as mentioned in the Petition, which are relevant to the issue in question, are as follows: (1) M/s. GNB Technologies (India) Private Limited (herein after referred as Petitioner/Corporate Applicant) was incorporated in June 13, 1997 under the (Indian) Companies Act, 1956, bearing CIN: U31109KA 1997PTC022384. GNB Technologies is in the business of manufacturing sealed maintenance free, valve regulated lead acid batteries, etc. Its Authorized Share Capital is INR 10,00,00,000 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Directors if the Company, at their meeting held by way of circulation on 25th February 2019 has authorized inter-alia Mr. Gunjan Johri to file Application under the provisions of the IBC, 2016, on behalf of GNB and to accept the service of process for and on behalf of the GNB. (4) Exide Holding Asia Pte. Ltd., holding 99% shares of the Corporate Debtor had sent a letter to the Board of Directors of the Corporate Debtor on 4th January 2019, requesting them to initiate proceedings for the initiation of Corporate Insolvency Resolution Process of the Corporate Debtor under the Provision of the IBC, 2016. In pursuant to the above letter, an Extra-Ordinary General meeting was held on 11th January, 2019 wherein the shareholders' approval ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es payable to its holding Company M/s. Exide Technologies on account of various payables including raw materials supplied by Exide Technologies to GNB India. The Petitioner/Corporate Debtor is facing financial difficulties since from 2011, and could not able to revive its operations sufficiently to generate adequate revenue to stay afloat. Therefore, the Petitioner/Corporate Debtor Company was forced to even sell its plant and machinery and closed down its operations entirely long time back. The learned counsel has also filed a memo dated 8-11-2019, by inter-alia stating that the Adjudicating Authority may initiate liquidation proceedings instead of initiating CIRP, in the first instance itself, due to the huge volume of debt owed by the Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 of the Order are not Applicable to the Company. According to the information and explanations given to them and on the basis of their examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. Ax explained to us, the Company did not have any dues on account of employees' state insurance and duty of excise; according to the information and explanations given to them, there are no dues in respect of sales tax, income tax, custom duty, wea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thus they are initiating insolvency proceedings before NCLT. 8. As stated supra, the current assets of the Company is only whereas it current liabilities are approximately INR 49.98 and there is no possibility to revive the Company as the Company sold its plant and machinery long time back and closed down its operations for more than 5 years back. Moreover, the Corporate Applicant owes the liability to its holding Company which supplies all the raw materials to the Corporate Debtor and the Holding Company was also not interested to revive the Company. Therefore, there is hardly any possibility of any Resolution plan likely to be received during first stage of CIRP, if initiated, and thus it would be just and proper to put the Corporate App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the terms and conditions to be agreed upon by the parties in the light of the extant provisions of the IBBI.
(3) We hereby directed the Liquidator to issue immediate public announcement by stating that the Corporate Debtor is in liquidation
(4) The Registry is directed to communicate this order to the Registrar of Companies, Karnataka for information and necessary action.
(5) The liquidator is directed to strictly adhere to the extant provisions of the Code and the Rules made there under framed by IBBI from time to time and also directed to take expeditious steps to complete the liquidation process in the light of various orders.
(6) Post the case on 6-12-2019 for report of the Liquidator. X X X X Extracts X X X X X X X X Extracts X X X X
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