TMI Blog2020 (1) TMI 1254X X X X Extracts X X X X X X X X Extracts X X X X ..... d there is default on the part of the corporate debtor - the application is complete in all respects and is to be admitted. Petition admitted - moratorium declared. - C.P. (IB) No. 266/7/NCLT/AHM/2019 - - - Dated:- 3-1-2020 - Manorama Kumari, Member (J) And Chocklingram Thirunavukkarasu, Member (T) For the Appellant : Natasha Dhruman Shah, Adv For the Respondents : Harmish K. Shah, Adv ORDER Manorama Kumari, Member (J) 1. Mrs. Neeta Rameshbhai Patni, being authorised signatory, on behalf of financial creditors, filed this petition under section 7 of The Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the Code ) read with Rule 4 of The Insolvency and Bankruptcy (Application to Adjudicating Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having registered office at Dombivli, Mumbai having identification No. U72900MH2009PTC1943 95. 8. The seventh applicant/financial creditor viz. M/s. Wellworth Apparels Private Limited is a private limited company incorporated on 15.07.2009 having registered office at Dombivli, Mumbai having identification No. U17120MH2009PTC194116. 9. The respondent/corporate debtor M/s. Jaybharat Textiles and Real Estate Private Limited is a company registered under the Companies Act, incorporated on 21.02.1985 having identification No. L99999GJ1985PLC011553 and having registered office at Taluka Pardi, Dist. Valsad, Gujarat State. Authorised share capital of the respondent company is ₹ 1,50,00,00,000/- and paid-up share capital is ₹ 76, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the records it is found that the learned lawyer appearing on behalf of the respondent company filed an additional affidavit admitting the total amount as claimed in the petition. That, the documents filed along with the application is sufficient to prove that there exists financial debt and the application is not barred by limitation. 16. In view of the above discussions, the Adjudicating Authority is of the considered view that there is debt due to financial creditors and there is default on the part of the corporate debtor. In view of the judgment of the Hon'ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank Ltd. [2017] 84 taxmann.com 320/143 SCL 625 the Hon'ble Supreme Court while explaining sections 7 and 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase maybe . 17. It is also held in Mobilox Innovations (P) Ltd. v. Kirusa Software (P.) Ltd. [2017] 85 taxmann.com 292/144 SCL 37 (SC) as under:-- 38......in the case of a corporate debtor who commits a default of financial debt, the adjudicating authority has merely to see the records of the information utility or other evidences produced by the financial creditor to satisfy itself that a default has occurred. It is of no matter that the debt is disputed so long as the debt is due , i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date. It is only when this is proved to the satisfaction of the adjudicating authority then the adjudicating authority may reject an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst him with the Board or Indian Institute of Insolvency Professionals of ICAI. 22. In the aforesaid background and as also discussed above, the application under section 7(2) of the IB Code is complete in all respects and there is debt due to the financial Creditor and there is default on the part of the corporate debtor . Hence, there is no alternative but to admit the application in absence of any infirmity. 23. In view of the above, the petitioner/financial creditor having fulfilled all the requirements of section 7 of the Code, the instant petition deserves to be admitted. 24. The petition is, therefore, admitted and the moratorium is declared for prohibiting all of the following in terms of sub-section (1) of section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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