TMI Blog2019 (6) TMI 1525X X X X Extracts X X X X X X X X Extracts X X X X ..... on. A true copy of statement of accounts submitted by the Financial Creditor pertaining to various loan facilities, kept during the course of banking business, basing on which the claim has been raised, can be termed as sufficient evidence of the financial debt. Application admitted - moratorium declared. - C.P. NO. – IB-117(PB)/2019 - - - Dated:- 14-6-2019 - Chief Justice (Rtd.) M.M. Kumar Hon'ble President And S.R. Mohapatra Hon'ble Member (T) For the Petitioner: Mr. Sanjay Bajaj Prabhakar, Advocates Ms. Mallika Prabhakar. For the Respondent: Ms. Aakansha Nehra Gupta, Advocates Mr. Rishabh Gupta. JUDGMENT M.M.Kumar, The 'Financial Creditor'-Punjab National Bank has filed the instant petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for brevity 'the Code') with a prayer to trigger the Corporate Insolvency Resolution Process in the matter of M/S. Beta Infratech Private Limited. 2. The Corporate Debtor-M/s. Beta Infratech Private Limited is a company registered under the provisions of the Companies Act, 1956 and was incorporated on 11.02.2008. The identification number of the Corporate Debtor is U45200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al realisation. 10. Learned counsel for the Corporate Debtor has opposed the admission of the petition by asserting that:- (i) The amounts claimed by the alleged Financial Creditor are yet to be ascertained and proceedings in that regard are already pending before the Debt Recovery Tribunal-Il, Hyderabad. (ii) Various disputes exist between the parties which have occurred due to the default on the part of the alleged Financial Creditor and other lenders in failing to fulfil the obligations in terms of financial documents. The Respondent has due to the said illegal actions of the members of the Consortium suffered a huge loss over a sum of ₹ 1000 crores. Thus, there is no default within the meaning of the said term under the Code. (iii) The purpose of the act is to consolidate and amend the laws related to the re-organization and insolvency resolution of corporate persons and individuals in a time bound manner for maximization of value of asset for such persons. The purpose is not to liquidate the company; especially when the claims are seriously disputed. (iv) Without prejudice to the other submissions, it has been highlighted that assets mortgaged and/or hypot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same extent as, the original entry itself is now by law admissible, but not further or otherwise. 17. A perusal of the aforesaid provision would show that a certified copy of entry in a banker's books is to be regarded as prima facie evidence in all legal proceedings with regard to the existence of such entry. It must be admitted as evidence of the matters, transactions and accounts therein recorded in every case. It has come on record that a certificate of entries in a banker's books in accordance with the Banker's Books Evidence Act, 1891 has been placed before us (at pgs. 1077) certifying that the statements of accounts filed along with the application are maintained by it in their ordinary course of business. 18. It is pertinent to mention that the resolution process is an attempt to rescue a fund starving body corporate from the financial challenging conditions and to restore it back to a sustainable financial ease. It may involve financial restructuring, any other arrangement by involving another fund infusing company or even by compromise with its creditors. The object of the 'Code' is to resolve the insolvency which could not be achieved unless th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us consideration. It is already observed that the object of the Corporate Insolvency Resolution Process is to rescue a fund starving body corporate from the financial stress as is discussed in para 18 of the order and it is not understood as to how the Corporate Insolvency Resolution Process could be deferred merely because assets mortgaged and/or hypothecated to the Financial Creditor-Petitioner could fetch exorbitant amount comparison to the amount which has been claimed in the present petition. The issue is always concerning liquidation of the Corporate Debtor. Such like factors have no bearing on the admission of the petition. 21. We further find that all requirements of Section 7 for the initiation of Corporate Insolvency Resolution Process by a Financial Creditor stand fulfilled. In that regard, he has submitted that the petition as prescribed by Rule 4 (1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 read with Section 7 (2) of IBC is complete in all respects. He has further submitted that the details of the default along with the dates have been stated in part IV and the additional documents have been submitted subsequently along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o deposit a sum of ₹ 2 lacs with the Interim Resolution Professional to meet out the expenses to perform the functions assigned to him in accordance with Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016. The needful shall be done within three days from the date of receipt of this order by the Financial Creditor. The amount however be subject to adjustment by the Committee of Creditors as accounted for by Interim Resolution Professional and shall be paid back to the Financial Creditor. 29. Before parting we must notice a general complaint being agitated against Financial Creditors, Banks, NBFC and Asset Reconstruction Companies for charging exorbitant rates of interest or compounding of interest on penal rates of interest or discrepancies in the statement of account. We cannot determine the amount due. Therefore, Resolution Professional may ask the ex-promoter/ director of the Corporate Debtor for any such correction if need be and act accordingly. 30. The office is directed to communicate a copy of the order to the Financial Creditor, the Corporate Debtor, the Interim Resolution Professional ..... X X X X Extracts X X X X X X X X Extracts X X X X
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