TMI Blog2020 (3) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... ee years of the default. e) Copy of the Application filed before this Tribunal has been sent to the Corporate Debtor. The application filed by the Petitioner under Section 7 of Code is found to be complete for the purpose of initiation of Corporate Insolvency Resolution Process against the Respondent Corporate Debtor Company. Petition admitted - moratorium declared. - CP(IB) 161/7/NCLT/AHM/2019 - - - Dated:- 16-3-2020 - Prasanta Kumar Mohanty, Adjudicating Authority Member (T) And Harihar Prakash Chaturvedi, Adjudicating Authority Member (J) Ms. NatashaDhruman Shah, Advocate for the Petitioner/ Operational Creditor. Mr.NavinPahwa, Sr. Advocate, Ms.Himani Chhabra, Advocate for the Respondent/ Corporate Debtor ORDER Mr. Prasanta Kumar Mohanty, Member 1. The Petitioners, Mr. Pradyumankumar Dwarkadas Patel, Smt. Jyotsnaben Pradyumankumar Patel Mr. Hardik Pradyumankumar Patel, claiming as 'Financial Creditors', filed this Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (herein after referred to as a Code ), seeking initiation of Corporate Insolvency Resolution Process ( CIRP in Short) against the Corporate Debtor Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Application. c) During the course of the arguments on 30.08.2019, the Ld. Counsel for the Respondent Corporate Debtor Company conceded that the books of account clearly depict the debt as Unsecured Loan and that the Respondent Corporate Debtor Company has also paid interest at the rate of 10% as assured on the said Unsecured Loan. For period when the Applicants were directors of the Respondent Corporate Debtor Company and the period after Applicants' resignation as directors, the TDS certificates, the demand notice dated 07.02.2019 issued by the Applicants recording the entire transaction and the balance sheet has not been controverted or denied by the Respondent Corporate Debtor Company. 6. It is further stated by the Applicants that in addition to their remuneration as Directors being invested as Unsecured Loan advanced to the Respondent Corporate Debtor Company, the Applicants made additional payment of (Pradyumankumar D Patel INR 16,74,000/-, Jyotsnaben P Patel INR Hardik P Patel INR during the period FY 14-15, FY 15-16 and FY 17-17) towards Unsecured Loan. 7. It is submitted that after resignation, the Applicants being erstwhile Directors of the Respondent Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss Book of the Applicants by BOI for the period from 14.04.2017 till date. The Registered Office of the Respondent Corporate Debtor Company is in Ahmedabad. It is stated that the Application is within time. Applicant proposed the name of Shri Parag Sheth, as 'Interim Resolution Professional'. 12. Applicant despatched the copy of the Application to the Respondent Corporate Debtor Company on 20.02.2019. This Application has been filed on 19.02.2019 and the same was listed before this Adjudicating Authority for the first time on 04.03.2019. This Adjudicating Authority directed the Applicants to serve notice of date of hearing upon the Respondent Corporate Debtor Company and file proof of service. Applicants filed proof of service of notice of the date of hearing upon the Respondent Corporate Debtor Company. Respondent Corporate Debtor Company appeared through a Counsel and filed Objections on 08.07.2019, which were accepted with a cost of ₹ 5,000/-, since beyond stipulated time. 13. The following are the Objections filed by Shri Bhupendrabhai Patel, Director of the Respondent Corporate Debtor Company. 13.1 It is submitted that the petition is filed on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed financial debt is above ₹ 1.0 Lakh. The Applicants have cited various judgements passed by the Apex Court to substantiate their claim. 15. Respondent Corporate Debtor Company in its written submissions pleaded that the Petitioners are not financial creditors within the meaning of Section 5(7) of the IBC, 2016, as no financial debts in terms of Section 5(8) of the IBC, 2016 is owed by the Corporate Debtor in favour of the Petitioners and the Petitioners have also not shown any agreement or document showing consideration for the time value of money. 16. Heard the learned counsel for the Applicant and the learned counsel for the Respondent Corporate Debtor Company. In view of the objections raised by the Respondent Corporate Debtor Company, this Adjudicating Authority has to first decide whether the amount claimed from the Respondent Corporate Debtor Company by the Applicants is a financial debt or not. Financial Debt , to the extent relevant for the purpose of this case, is defined in Clause (a) of sub-section (8) of Section 5 of the Code. It says, financial debt means a debt along with interest, if any, which is disbursed against the consideration for the time valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein. (c) Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (d) The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. II. The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during the moratorium period. III. The provisions of sub-section (1) shall not apply to (a) such transactions as may be notified by the Central Government in consultation with any financial sector regulator. IV. The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process. 20. The Petitioner/ Financial Creditor has suggested the name of Mr. Parag Sheth as the Resolution Professional in the present Petition. Mr. Parag Sheth, with Registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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