TMI Blog2020 (9) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... 15/2017-2018/11188, has been proposed as Interim Resolution Professional. Form 2 filed by the proposed Interim Resolution Professional is at Page 212 of the petition. Mr. Ajay Kumar Jain has certified that there are no disciplinary proceedings pending against him with the Board or Indian Institute of Insolvency Professional of ICAI. He has also affirmed that he is eligible to be appointed as a Resolution Professional in respect of the corporate debtor in accordance with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporation Persons) Regulations, 2016. In view of the satisfaction of the conditions provided for in Sections 7(5) of the Code, the petition for initiation of CIRP in the case of M/s Maruti Kesari Nandan Agro Foods Pvt. Ltd., is admitted - Petition admitted - moratorium declared. - CP (IB) No. 167/Chd/Hry/2019 - - - Dated:- 6-2-2020 - HON BLE MR. AJAY KUMAR VATSAVAYI, MEMBER ( JUDICIAL ) And HON BLE MR. PRADEEP R.SETHI, MEMBER ( TECHNICAL ) For the Petitioner : Mrs. Nishi Chaudhary, Advocate For the Respondent : None JUDGMENT Per : Ajay Kumar Vatsavayi, Member ( Judicial ) The instant petition is filed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Limit of ₹ 201 Lacs and a Term Loan of ₹ 148 Lacs, vide sanction letter dated 06.06.2014 (Annexure A3). Terms and Conditions of the said sanction letter are also attached as Annexure A4. Annexure A5 is the acceptance letter dated 06.06.2014, wherein the credit facilities, communicated vide sanction letter dated 06.06.2014, has been accepted by the respondent-corporate debtor. 5. It is stated that to secure the sanctioned limits of Cash Credit (Hypo) Limit of ₹ 201 Lacs and a Term Loan of ₹ 148 Lacs, respondent-corporate debtor executed various loaning and security documents, namely, board resolution dated 06.06.2014 (Annexure A6), hypothecation of goods book debts to secure CC facility dated 06.06.2014 (Annexure A7), Term loan Agreement dated 06.06.2014 (Annexure A8), hypothecation of assets to secure term loan dated 06.06.2014 (Annexure A9), hypothecation of moveable assets forming part of fixed/block assets dated 06.06.2014 (Annexure A10), letter of undertaking dated 06.06.2014, (Annexure A11) and undertaking dated 06.06.2014 (Annexure 12). 6. It is also stated that that the above said Cash Credit (Hypo) Limit of ₹ 201.00 Lacs and a Term Lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank of India and internal guidelines of the petitioner-financial creditor. 9. As per Part IV of Form 1, the following credit facilities were payable by the corporate debtor. Cash Credit Term Loan Car Loan Principal 2,69,81,850/- 1,39,80,371/- 9,92,731/- Interest 86,70,422/- 48,23,613/- 3,82,008/- Additional Interest 6,55,366/- 3,45,963/- 27,668/- Expenses 1,00,283/- 16,24,190/- 36,275/- 10. It is stated that two demand notice, both dated 19.03.2016, Annexure A16 (colly) under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (hereinafter referred to as SARFAESI ) was issued by the petitioner-financial creditor to the respondent-corporate debtor. As per these notices, an amount of ₹ 4,13,54,061/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the respondent has confirmed the balance and security vide his letters dated 09.06.2016 filed at Annexures A-19 (Colly). 2. Orders reserved. 15. We have heard the learned counsel for the petitioner and have carefully perused the records. 16. The Hon ble Supreme Court in the case of Innoventive Industries Ltd. Versus ICICI Bank and Another; (2018) 1 Supreme Court Cases 407, 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 and payable, which includes non-payment of even part thereof or an instalment amount. For the meaning of debt , we have to go to Section 3(11), which in turn tells us that a debt means a liability of obligation in respect of a claim and for the meaning of claim , we have to go back to Section 3(6) which defines claim to mean a right to payment even if it is disputed. The Code gets triggered the moment default is of rupees one lakh or more (Section 4). The corporate insolvency resolution process ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act. 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 7 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 7 days of admission or rejection of such application, as the case may be. 29. The scheme of Section 7 stands in contrast with the scheme under Section 8 where an financial creditor is, on the occurrence of a default, to first deliver a demand notice of the unpaid debt to the financial debtor in the manner provided in Section 8(1) of the Code. Under Section 8(2), the corporate debtor can, within a period of 10 days of receipt of the demand notice or copy of the invoice mentioned in sub-section (1), bring to the notice of the financial creditor the existence of a dispute or the record of the pendency of a suit or arbitration proceedings, which is pre-existing-i.e. before such notice or invoice was received by the corporate debtor. The moment there is existe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst condition is that a default has occurred. From the facts narrated above, we find that the default has occurred. 21. The second condition is that the application under Section 7(2) is complete. No objections in this regard, were raised during the hearing of the petition. We have discussed the contents of the application above and we conclude that the application is complete. 22. The third condition is that there are no disciplinary proceedings pending against the proposed Resolution Professional. In the present case, Mr. Ajay Kumar Jain, IBBI/IPA-002/IP-N00415/2017-2018/11188, has been proposed as Interim Resolution Professional. Form 2 filed by the proposed Interim Resolution Professional is at Page 212 of the petition. Mr. Ajay Kumar Jain has certified that there are no disciplinary proceedings pending against him with the Board or Indian Institute of Insolvency Professional of ICAI. He has also affirmed that he is eligible to be appointed as a Resolution Professional in respect of the corporate debtor in accordance with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporation Persons) Regulations, 2016. 23. In view of the satisfacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of Section 16(5) of the Code; iii.) In terms of Section 17 of the Code, from the date of this appointment, the powers of the Board of Directors shall stand suspended and the management of the affairs shall vest with the Interim Resolution Professional and the officers and the managers of the Corporate Debtor shall report to the Interim Resolution Professional, who shall be enjoined to exercise all the powers as are vested with Interim Resolution Professional and strictly perform all the duties as are enjoined on the Interim Resolution Professional under Section 18 and other relevant provisions of the Code, including taking control and custody of the assets over which the Corporate Debtor has ownership rights recorded in the balance sheet of the Corporate Debtor etc. as provided in Section 18 (1) (f) of the Code. The Interim Resolution Professional is directed to prepare a complete list of inventory of assets of the Corporate Debtor; iv.) The Interim Resolution Professional shall strictly act in accordance with the Code, all the rules framed thereunder by the Board or the Central Government and in accordance with the Code of Conduct governing his profession and as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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