TMI Blog2020 (1) TMI 1253X X X X Extracts X X X X X X X X Extracts X X X X ..... complete in all respect. Hence it does not warrant any rejection or dismissal. 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 petitioner/financial creditor having fulfilled all the requirements of Section 7 of the Code, the instant petition deserves to be admitted. Application admitted - moratorium declared. - C.P. No. (IB) 572/7/NCLT/AHM/2018 - - - Dated:- 1-1-2020 - Manorama Kumari , Member ( J ) and Chocklingram Thirunavukkarasu , Member ( T ) For the Appellant : Dhruvkumar Chauhan and S.S. Panesar, Advocates For the Respondent : Archana Raval and Jigisha Raval, Advocates ORDER Manorama Kumari, Member (J) 1. Mr. S.K. Misra, Assistant General Manager, being authorised signatory of Bank of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ession of the corporate debtor created under hypothecation agreement dated 20.12.2014. That, the financial creditor holds first and exclusive charge on mortgaged properties also. 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. 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 Dhebar Road Branch, Rajkot, Gujarat State. 8. The applicant bank has submitted copy of the following documents in support of their claim: - Sl. No. Particulars Page Nos. 1 Form 1 1-7 2 Affidavit in support of form 1 8 3 Vakalatnama 9 4 Power o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23 Proof of dispatch of the present application along with the supporting documents 163 9. Respondent appeared and filed affidavit in reply accompanied by certain documents. Respondent has denied the averments made in the application filed by the applicant. It is further stated by the respondent that the bank has charged excess interest in the account of respondent No. 1 of ₹ 11,56,696.83 and, therefore, the applicant bank advised the corporate debtor to pay the rest of the overdue amount in cash credit and term loan and regularise the account immediately. 10. Apart from the above objections, respondent has not made any objection against the application so made by the petitioner. However, the corporate debtor has submitted that the bank has initiated proceedings under SARFAESI Act and served notice u/s. 13(2) on 28.03.2018. Findings 11. At the time of last hearing also only proxy lawyer remained present on behalf of the respondent. On perusal of the records it is found that the matter is pending since long for hearing. Heard learned lawyer appearing for the financial creditor. 12. On pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l creditor means a person to whom an operational debt is owed and an operational debt under Section 5(21) means a claim in respect of provision of goods or services. 28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor. It need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under Sub-Section (1) in such form and manner as is prescribed, which takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under Rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed form in 5 parts, which requires particulars of the applicant in part I, particulars of the corporate debtor in part II, particulars of the proposed interim resolution professional in part III, particulars of the financial debt in part IV and documents, records and evidence of default in part V. Under Rule 4(3), the applicant is to dispatch a copy of the application fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice dated 27.09.2018. Records available shows that the respondent has not cared to reply the notice issued by the applicant. 18. 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. 19. 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'. 20. 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 Mr. Prawin Charan Dwary. The Adjudicating Authority hereby appoint Mr. Prawin Charan Dwary, 407, Akchhat Tower, Pakwan Cross Road, S.G. Highway, Bodakdev, Ahmedabad 380 054 (Email ID dwaryprawin@gmail.com) having registration No. IBBI/IPA-002/IP-N00 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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