TMI Blog2020 (10) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... s in mind, it is found that the Financial Creditor has not received the outstanding Debt from the Corporate Debtor and that the formalities as prescribed under the Code have been completed by the Applicant, we are of the conscientious view that this Petition deserves 'Admission'. Application admitted - moratorium declared. - CP (IB) /54/KOB/2019 - - - Dated:- 18-3-2020 - Ashok Kumar Borah, Member (J) And Veera Brahma Rao Arekapudi, Member (T) For the Appellant : Pranoy Harilal, Advocate ORDER 1. The Company Petition (C.P) was originally filed and numbered as Company Petition No. 12/2016 before the Hon'ble High Court of Kerala. From the records transferred from the Hon'ble High Court of Kerala, it is note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled under Section 7 of the Insolvency and Bankruptcy Code, 2016. The bench passed the following order: In view of the provisions contained in Rule 5 of Companies (Transfer of pending Proceedings) Rule, 2016 and in view of the judgment of the Hon'ble Supreme Court in Forech India Ltd. Vs. Edelweiss Asset Reconstruction Co .Ltd (supra) the matter has to be dealt with in accordance with Part II of the Code i.e., under the Insolvency Resolution and Liquidation for Corporate Persons, we allow the I A No. 61/KOB/2019 and direct the Registry to renumber the TCP/16/KOB/2019 as an application filed under the Insolvency and Bankruptcy Code, 2016 and issue notice to the respondents. 2. Accordingly, the Applicant (Kerala State Industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for manufacture of brake linings for heavy commercial vehicles and passenger cars. The company incurred heavy losses from the beginning and after operations for 5 years the company was forced to close all operations in 1983 owing to the losses. To revive the company an agreement to provide loan was executed between the Financial Creditor and the Corporate Debtor on 09.04.1990, whereby applicant granted a term loan of ₹ 40,80,000/- (Rupees Forty Lakhs and Eighty Thousand Only). 5. It is also stated that as security for the term loan granted the immovable assets of the company were mortgaged by deposit of title deeds of the land admeasuring 1 Acre in Industrial Estate, Pappanamcode, Trivandrum District, Kerala. The Corporate Debto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial Creditor issued notice to the Company on 13.07.1996 and attached the movables and immovables of the Company. The auction for the immovable properties of the company was held on 22.02.2000. However, the same did not materialize due to want of bidders. Meanwhile one of the Directors of the Corporate Debtor filed a Writ Petition before High Court of Kerala numbered as Original Petition No. 20189/1995 against Revenue Recovery Process. The same was dismissed on 09.09.1999. Pursuant to such dismissal, the Applicant wrote several reminders to the District Collector, Thiruvananthapuram to proceed against the properties of the Guarantor, but to no avail. Later, the Financial Creditor issued notice under Section 434 (1) (a) of the Companies A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e admitted facts in mind, it is found that the Financial Creditor has not received the outstanding Debt from the Corporate Debtor and that the formalities as prescribed under the Code have been completed by the Applicant, we are of the conscientious view that this Petition deserves 'Admission'. 11. Further that, we have also perused the Form - 2 i.e. written consent of the proposed Interim Resolution Professional submitted along with this application/petition by the Financial Creditor and there is nothing on record which proves that any disciplinary action is pending against the said proposed Interim Resolution Professional. 12. Hence, after perusal of the provisions of the Code and facts and circumstances of this case along w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
