TMI Blog2020 (2) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... howed a decrease from ₹ 15.12 Crores as on 31.03.2017 to ₹ 4.48 Crore as on 31.03.2018. Its losses as given at page 1115 show an increase from ₹ 20.11 crore as on 31.03.2017 to ₹ 29.10 crore as on 2017-18. Thus it is seen that the Company been showing increasingly borrowings and losses, and reducing cash flow over the years. This indicates an unhealthy financial status with regard to its ability to pay its debts. Therefore, the Company, apart from failing to complete the projects in question so as to deliver Flats as agreed upon between the parties, is prima facie insolvent. We are also not convinced with the financial status of the Company filed by the Respondent, as per Brief note dated 07.02.2020. Since the Respondent has failed to come forward to settle the issue raised in the instant Company Petition, there is no other alternative for the Adjudicating Authority except to consider the case as per merits - It is also relevant to point out here that we cannot keep the grievances of more than 250 Home buyers pending that too without any response coming from the Corporate Debtor to show any sort of solution for the issue raised in the instant Petition. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P) in respect of M/s. Skylark Mansions Private Limited (Respondents/Corporate Debtors) on the ground that it has committed default for an amount of ₹ 220,90,27,614/- (Rupees Two Hundred and Twenty Crores Ninety Lakhs Twenty Seven Thousand Six Hundred and Fourteen only) which consists of principal amount and interest @ 18% p.a., in respect of all the Homebuyers. 2. Brief facts of the case, as mentioned in the Company Petition, which are relevant to the issue in question, as follows: (1) M/s. Skylark Ithaca Buyers Welfare Association Consisting of 255 Homebuyers (hereinafter referred to as Petitioners/ Financial Creditors) are Home Buyers, who have entered into Agreements of Sale and Constructions, on various dates for purchase of Apartments of varying sizes, in the residential Apartment Complex proposed by Skylark Mansions Private Limited. The said Skylark Mansions Private Limited entered into Three (3) Joint Development Agreements with the Landowners and One (1) Supplemental Agreement with the Landowners of the composite property, on which the proposed residential apartment complex was being constructed. The said Landowners had also executed Powers of Attorney in favou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... my. The Resolution passed by the Association authorizing its Secretary and such others to institute proceedings against the Corporate Debtor. (4) It is stated that the Corporate Debtor had held out to the Financial Creditors that it had entered into Joint Development Agreements (JDA's) with various landowners in respect of Sy. Nos. 24/4, 24/5, 24/6 of Kodigehalli Village and Sy. Nos. 28, 29, 30/1, 32/1 of Kurudu Sonnenahalli Village, K.R. Puram, Bangalore admeasuring approximately 20 Acres along with Certain Supplemental Agreements (SA's) and that under the said JDA's, SA's, etc., it was agreed that the Corporate Debtor would be entitled to develop the said property into a multi-storeyed Residential Apartment Building and accordingly had secured a Development Plan, sanctioned by the Bangalore Development Authority on 16.11.2013 and that the Corporate Debtor had also obtained a Building Construction Plan vide LP No. 68/2013-14 dated 24.02.2014 for construction of Five (5) buildings. The details of which are mentioned herein below: i) BUILDING-1:- 6 towers (Tower 1 to Tower 6) comprised of Lower and Upper basement, Ground +19 Floors. ii) BUILDING-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors have self-financed their respective flats. Further, the Corporate Debtor through its IEPL had entered into Tripartite Agreements with the Financial Creditors and their respective Banks/Financial Institutes to enable the Financial Creditors avail Home Loans, thereby ensuring that all amounts under the aforesaid Agreements were received by IEPL for and on behalf of the Corporate Debtor. As on date, the Financial Creditors have paid over 90% of the consideration/cost to the Corporate Debtor through IEPL, though the extent of construction was/is not commensurate with the payments made. These payments had to be made by the Financial Creditors, to avoid delayed payment interest, penalty and any whimsical action at the Corporate Debtors end. The Financial Creditors have also been servicing the loans/facility availed from their bankers by regularly paying the Equated Monthly Instalments (EMI's), in order to avoid any action from the Bank and to avoid their credit worthiness being affected. (7) It is submitted that some of them have entered into Agreements with IEPL, under which they were made to pay an additional sum of over ₹ 400 per square foot and IEPL having receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of ₹ 4/- per square feet, per month, for the delayed period in handing over possession of the Apartments duly completed in all respects along with the proposed amenities. (10) It is submitted that the Corporate Debtor and IEPL, had called all Financial Creditors for a meetings dated 13.09.2018 and 22.09.2018. In the said meeting, it was agreed by the Chairman and Managing Director Mr. Saleem Sheriff of the Corporate Debtor and IEPL that the construction which was dormant would resume by October 2018 and that the Apartments in the respective Towers would be handed over to the Financial Creditors, between March, 2019 and June, 2019. However, there has been no progress with the construction. (11) The details of the Financial Creditors, the Apartment Nos. they have contracted for, Agreement date, Amount paid, etc., are mentioned herein below: Sl. No. Names Tower Plat Number Total Cost in Rs. Agreement Date Amount Paid Interest @ 18% 1 Veni Pranavananda T4-402 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,266 13 Rajesh C T1-506 5,661,130 14-Nov-14 3,698,867 2,550,699 14 Arun Ramakrishnan T1-904 5,434,493 29-Jan-15 4,885,375 3,518,589 15 Mohammed Shanawas Kallikkal Semna P. T1-604 4,986,417 12-Apr-14 4,707,700 3,727,792 16 Kranti Khilari Mayank Singh T1-1505 5,407,622 20-Nov-14 5,130,024 4,080,382 17 Manoj Kumar Rastogi T1-802 4,902,330 29-Dec-14 4,328,249 3,187,832 18 Apurba Ghosh T1-1502 5,810,606 20-Dec- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,284,626 30 M. Girish Kini and Kripa Kini T2-003 5,745,590 24-Sep-14 5,053,397 3,771,918 31 Mainak Das T2-1306 6,561,311 01-Jun-16 5,955,608 3,648,110 32 Shailesh Jaiswal T2-1903 7,075,237 29-Dec-17 6,367,713 1,881,656 33 Praveen Kumar Tiwari T2-905 4,721,658 24-May-14 4,168,449 3,130,012 34 Chiranthan Purushotham T2-1205 49,313,030 23-May-14 4,371,573 3,033,008 35 Vipul Ranjan Reshu Sinha T2-705 5,660,468 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,802,622 47 Anil Thomas T5-103 5,811,244 12-Sep-14 5,172,005 3,997,615 48 Shaikh Zamiruddin T5-1806 7,355,396 08-Jul-16 6,116,899 3,378,805 49 Anirban Dutta Ss Sujata Basu Dutta T5-503 6,347,723 16-Oct-14 5,645,517 4,160,772 50 Samarendra Mishra and Saswati Pani T5-105 5,753,683 29-Aug-15 4,123,737 2,835,610 51 Dhimant Antani Ss Saraswati Antani T5-406 6,607,352 28-May-14 5,772,109 4,374,163 52 Sujeet Kumar 85 Anshu Sujeet Kumar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,708,194 09-Sep-14 6,853,565 5,160,907 64 PM Madhusoodhanam T7-702 8,200,000 10-Jan-14 7,380,741 5,903,418 65 Satyendra Pratap Singh Madhulika Singh T7-1003 7,196,394 06-Aug-14 6,849,600 5,392,772 66 Regina A Bibin Basheer T8-101 7,634,604 20-Sep-16 6,830,370 3,534,595 67 Pravin Pratap Pushkar Anchal Kumari T8-601 8,308,738 27/12/2017 4,474,874 1,083,648 68 Manu Mohan Variar and Anjana Variar T8-1701 7,664,566 19/12/2016 6,852,183 3,279,006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T9-801 5,157,624 25/12/2014 4,395,146 3,231,620 81 Arunabh Sinha Anubhuti Sinha T9-1806 7,150,100 20/01/2018 6,772,012 1,830,654 82 Pritesh K Kotian and Priya K Kotian T9-1201 5,312,972 22/11/2014 4,734,114 3,546,062 83 Shital Nitin Neralkar Nitin Durgadasrao Neralkar T9-1605 5,347,524 29/05/2014 4,775,235 3,548,646 84 Neha Gupta and Alankar Gupta T10-505 5,397,326 19/07/2014 4,879,915 3,943,014 85 Nishith Suchak T10-1601 5,631,916 22/04/2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21/11/2014 4,034,580 3,076,682 97 Jai Babu Mahankud Sunita Kumari Gouda T11-1801 5,729,539 25/04/2018 4,271,000 888,191 98 Chaitanya Varma Kanumuri Sravanthi Kanumuri T11-901 5,737,274 18/11/2016 4,763,664 2,343,029 99 Nithya Caliany and J Gopikrishna T8-401 6,982,000 21-Aug-14 6,654,677 5,409,022 100 Ridhy Patel Viralkumar Patel T17-303 8,388,284 18/03/2016 7,472,856 4,091,145 101 Manoj Kumar Nayak T5-1304 3,945,588 12-Jul-19 3,194,498 1,610,032 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Clifford Lobo Krysha Maria Lobo T5-002 3,907,586 30/06/2018 3,075,950 1,694,293 114 Vikas Anand Anubha T8-901 6,890,078 30/05/2014 6,090,787 4,388,997 115 Sunanda Padhy T10-405 5,324,362 02-Dec-14 5,058,146 4,283,772 116 Kiran Shenoy Haradi Meera Aravind T5-204 3,451,524 19/11/2016 3,084,000 1,463,522 117 Nand Kishore Sapra T1-1303 5,528,203 23/04/2015 4,991,214 3,625,942 118 Vikash Anil Nehawashini Anil T7-302 7,018,601 28/05/2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tanish Agrawal T2-303 6,380,476 19/07/2014 6,017,403 4,866,688 131 Pinky Agrawal T6-303 5,301,549 18/08/2014 5,008,504 4,060,781 132 Samira Kumar Patnaik Priyadarshini Samantaray T3-903 5,514,960 01-Aug-15 4,928,029 3,643,322 133 Naveen Babu Kotturu T11-504 4,601,564 15/02/2015 4,087,892 2,976,890 134 Sumeet Kumar T6-301 4,679,738 30/05/2014 4,453,515 3,152,108 135 Archana Rai T5-1501 5,205,234 17/05/2017 4,718,612 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gal T4-1304 6,675,000 08-Jun-14 5,953,525 4,384,975 148 Ravi Kumar T2-1803 7,497,050 23/03/2018 6,000,000 1,507,532 149 Ravi Ranjan Sharma T5-905 5,943,390 12-Sep-14 4,133,896 3,177,354 150 Joseph Kuruvilla Thomas T13-1203 6,338,803 04-Nov-16 5,382,640 2,509,114 151 Simrati Kaul Abhishek Raina T7-301 6,723,135 28/05/2014 5,985,608 4,419,777 152 Binny V Kuruvilla Vinitha Ponnachen T2-106 6,200,000 12-Oct-14 5,232,434 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,774,601 4,411,689 164 Kartikesh Authimoolam Nadar Sunitha Kartikesh Nadar T12-1403 7,473,755 05-Oct-16 5,897,143 3,286,128 165 Indranil Pal T1-1006 4,926,265 23/05/2014 4,371,595 3,272,807 166 Irudaya Praveen T3-1202 6,436,099 04-Dec-18 5,034,244 2,698,263 167 Kanchan Arora Amit Arora T10-1001 5,015,669 20/06/2014 4,738,862 3,818,897 168 Naveen Naidu T9-1005 5,400,000 13/02/2015 4,123,437 5,032,656 169 Ujrjwal Kumar and Veena Singh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T2-605 4,744,618 24/05/2014 4,209,206 3,125,356 180 Vinay Cherkur T11-806 5,646,390 03-Aug-15 5,065,732 3,544,402 181 Amit Kumar Gupta and Manila Rauniyar T5-1801 9,117,275 19/07/2014 8,078,040 6,031,407 182 Arvind Kandula and Jaya Kandula T18-203 8,360,090 19/03/2016 6,584,451 3,874,785 183 Shri. Thirthankar Haider and Smt. Ishrat Jahan T6-305 4,902,130 30/05/2014 4,328,462 3,260,398 184 Shreeparna Mazumdar T5-1405 6,000,000 21/09/2016 4,581,004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Smt. Gunjan Sungh and Shri. Manish k Singh T1-1506 5,388,490 19/12/2014 5,105,399 4,043,656 197 Vivek Kumar Parul Dhankar T7-501 8,022,085 12-Apr-16 6,042,937 3,104,673 198 Yamim Snvastava Alind Srivastava T1-403 6,520,137 11-Oct-17 5,308,230 1,639,621 199 Gaurav Goswami Naresh Chandra Gupta T8-1603 7,131,333 02-Jan-14 6,346,551 4,786,629 200 Hirak Kumar Rajendrabhai Patel T10-1201 5,222,565 19/07/2014 4,916,791 3,958,103 201 Kunal Mohanty Amar Pratap Mohanty T3-1503 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02-Jan-17 5,039,831 1,483,915 213 S. Prabhakaran V. Srividhya T6-1003 5,096,236 07-Apr-14 4,511,609 3,404,165 214 Venkata Sudheer Kumar Chunduri and Lavanya Voruganti T6-1705 4,537,002 09-Jun-17 2,900,000 1,046,762 215 R Balaraaman T15-1203 7,490,899 26/04/2016 5,738,746 3,022,131 216 Akhil Koul and Rajni Koul T8-1503 8,051,176 26/05/2015 7,265,436 4,913,528 217 Naveen M and Jayashree Shigihalli T8-603 8,441,456 25/08/2015 5,914,632 4,321,241 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Namita Varma T5-206 6,265,779 06-May-14 5,587,438 4,247,477 230 Jainendra Kumar and Sunidhi Sinha T2-1001 5,473,662 03-Nov-15 4,893,453 3,445,696 231 Jasbir Kaur Dosandh and Kiranpreet Kaur Dosandh T1-305 4,791,683 18/07/2014 4,236,577 3,163,327 232 Mrs Rashmi Rawat T5-306 6,306,751 28/11/2014 5,348,228 4,009,474 233 Surendra Panwar and Sonam Dhandhal T9-1703 6,546,927 23/03/2017 5,210,508 2,275,761 234 Ruma Chatterjee and Sabyasachi Chatterjee T9-904 3,930,63 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,070 20-Mar-15 2,509,235 1,838,153 246 Sanjit Kumar Bisoyee T11-905 5,337,698 21-Nov-14 4,764,485 3,537,001 247 Kirti Srivastava and Prateek Srivastava T5-302 3,785,186 14-Jun-18 2,960,724 1,679,295 248 Vijayendra Tiwari and Vidya Tiwari T9-605 5,867,000 12-Jan-15 3,475,059 2,567,933 249 Gautham Arora and Meera Arora T5-605 5,182,300 28-May-14 4,610,786 3,490,901 250 Amit Bhakuni T1-806 5,515,004 16-Dec-14 4,928,110 3,615,452 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same and the request of the Financial Creditor to comply with the orders of the RERA, the Corporate Debtor and IEPL are unable to comply with the same. (13) It is submitted that they have issued a notice dated 22.07.2019, in the capacity of Financial Creditors, through their Registered Association, demanding repayment of the aforesaid amounts. The Corporate Debtor and IEPL and the commons Directors have issued a vague, untenable and frivolous reply dated 08.08.2019, almost reneging on their commitments and obligations under the Agreements and not complying with the demand for making payment of the amounts paid by the Financial Creditors. All these amounts have been paid by them as early as 2014 - 2015, neither has the Amount earned its time value of money, nor has the same earned interest. The Corporate Debtor and IEPL have neither shown sufficient progress in the construction of the proposed Buildings nor have they handed over possession of the Apartments in terms of their commitments under the respective agreements. The list of other Financial Creditors/Home buyers in the very same project, who have approached the RERA and case are pending in RERA and Cases which are sent to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Petitioner much less than an amount of ₹ 50,79,697/-, the alleged liability would not fall under the definition of financial debt; he cannot be considered as Financial Creditor under provisions of the Code; there is a pre-existing dispute as the Petitioner has not filed appeal and they have not produced required documents etc. The Respondent has filed its Statement of Objections dated 4th December, 2019, by reiterating similar objections by denying contentions of Petitioner. Since the Respondent has not preferred an Appeal against the said order, it became final, and thus the Respondent has admittedly committed default for ₹ 50,79,697/- By perusal of the instant Petition, we are satisfied that the instant Petition/Application is complete as per law and default is not in dispute and eligible Resolution Professional was also suggested and thus it is a fit case to initiate CIRP against the Corporate Debtor. However, another Petition viz., C.P.(IB) No. 389/BB/2019 is filed by 255 Home Buyers against the same Corporate Debtor, we have examined this case as per merits, as detailed supra. 4. Heard Mr. Joshua H Samuel, learned Counsel for the Petitioners and Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the file of this Adjudicating Authority, and thus the case was taken by the Bench, and granted several opportunities to the Respondent either to resolve the issue in question between Parties or to file their statement of objections in order to avoid initiation of CIRP against them, which would result in devastating effect on the affairs of Company. However, they have not availed the opportunity. It is relevant to refer and extract the docket proceedings of case as below:27.11.2019: The learned Counsel for the Petitioner and the learned Counsel for the Respondent were present. The learned Counsel for the Respondent requests time for filing Statement of Objections. Therefore, the Adjudicating Authority has directed the learned Counsel for the Respondent to file Statement of Objections, duly serving the copy on the other side. 11.12.2019: On this day the learned Counsel for the Petitioner was present and none appeared for the Respondent. 02.01.2020: On this day, the learned Counsel for the Petitioner and the learned Counsel for the Respondent were present. The learned Counsel for the Respondent undertakes to file vakalath and requests time. Again, the Adjudicating Authority has dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght the Respondent is aware of instant Proceedings since 25th September, 2019 and the Petitioners after failing to get relief despite their best efforts, have failed to place their version of case by way of filing their Statement of Objection. In the circumstances, the Adjudicating Authority is bound to decide the matter as merits. The Respondent has not placed any material to show that they are concerned with the grievances of the Petitioners apart from other similarly situated Persons. 10. It is relevant to refer the judgment of Hon'ble Supreme Court in Innoventive Industries Ltd. Vs. ICICI Bank and Anr. - (2018) 1 SCC 407 , relevant portion of which is extracted below: - 27. The scheme of the Code is to ensure that when a default takes place, in the sense that a debt becomes due and is not paid, the insolvency resolution process begins. Default is defined in Section 3(12) in very wide terms as meaning non-payment of a debt once it becomes due and payable, which includes non-payment of even part thereof or an instalment amount. For the meaning of debt , we have to go to Section 3(11), which in turn tells us that a debt means a liability of obligation in respect of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicating authority is to be satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that the debt , which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under subsection (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be. 11. The Skylark Ithaca Buyers Welfare Association (Petitioner herein) was registered with the District Registrar of Societies, Zone-3, Bangalore Urban Dist., dated 04.04.2019, they have also filed Memorandum of Society, Rules and Regulation of the Society. The Members of the Association have duly resolved in the meeting dated 20.07.2019 to initiate action/class action against the Developer Skylark Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and conduct clearly establish that you had made promises/commitments, knowing fully well that they cannot be fulfilled/performed. Our Clients place on record that though under the terms of the Agreement, the flats were to be delivered by March, 2017, even as of April 2017 there was no progress in the Project, except of sketchy structures put up in part. After April 2017, work on the Project site had come to a complete standstill. However, on our Clients intervention and repeated visit to your offices and on site, you had under the guise of resuming work, in February, 2018 placed on site few laborers with no physical progress. We had thereafter noticed that even these laborers disappeared from the site from August 2018 and till date, the work at site has not commenced, though our Clients have complied with all their obligations and have paid all amounts. Therefore, they alternatively called upon the Respondent to comply with the following forthwith: a) Repay the amount of ₹ 101,10,51,180/- received from our Clients in total or alternatively to each of them the sums mentioned in the tabular above that has been paid to you by our Clients; and b) Pay out Clien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpowers to institute proceedings under the Insolvency and Bankruptcy Code 2016, as a Financial Creditor and seek for CIRP, the law is very clear that the homebuyer cannot insist on refund of the consideration amount already paid along with interest and other reliefs, before the date fixed for delivery of the possession and in this case the inordinate delay was caused by your clients by knocking to doors of the different forum just to tarnish the image of our clients Company and to hamper the construction business which is an abuse of the process of law. Moreover, to attract the provisions of the IBC Code, the homebuyers need to prove with cogent materials that the builder is at default and is willfully defaulting. Whereas in the present scenario our clients have made many correspondence with your clients to cooperate with our clients in completion of the Project but the intentions of your clients is to make unlawful gain in an unlawful manner. Our clients have sufficient means and resources to complete the Project and hand over the possession if your clients cooperate in this regard. 15. As stated supra, the Respondent, though chose not to file its reply, has filed Brief Note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Airport - White Field Road, Blore 2,25,000 2008 12 Skylark Enclave Residential Jagadishnagar, Off Airport Road, Blore 120,000 2008 13 Skylark Chambers Commercial Ulsoor Road, Blore 10,000 1996 14 Skylark Plazzo Commercial No. 98 Airport Road, Blore 24,000 2006 15 Skylark Regal Commercial Venkataswamynaidu Road, Blore 10,000 2007 16 Skylark Zenith Residential Residential Hosur Road, 145,709 2013 17 Skylark Zenith Commerical Commerical Hosur Road, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est prescribed. 7. As per Section 71(2) of RERA the complaint shall be disposed off by the Authority within 60 days from the date of receipt of the complaint. This complaint was filed on 05.08.2018. As per SOP, 60 days shall be computed from the date of appearance of the parties. In this case, the parties were present on 04.09.2018. Hence the complaint is not being disposed off within 60 days from the date of appearance. With this observation I proceed to pass the order. 11. The maximum deadline given by the developer was September, 2017. Now he has given the completion date as 31.12.2019 without following the Section 19(2) of the Act. The developer has kept the consumer in the dark and he has given the fresh date of completion by the virtue of induction of RERA as per S. 4(2)(1)(C). But liability to pay the delay compensation or relief to the consumer in case of delay shall be borne by him. By that time this RERA Act has already came into force. Therefore, the Authority has to decide the quantum of compensation per month as delay compensation. 12. As per Section 18(1) proviso the consumer who is not going to withdraw the project shall be paid with interest by the promote ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore initiating CIRP, it is paramount responsibility of Adjudicating Authority to examine various aspects of Corporate Debtor by keeping in view the elements of debt and default in question and object of code etc. As stated supra, basic facts with regard to debt and default are not by the Respondent. Section 2 of the Code says that provisions of Code to any Company incorporated under the provisions of Companies Acts, LLPs,; partnership firms etc., in relation to their insolvency, liquidation, voluntary liquidation, bankruptcy as the case may be. And by examining Annexure-23 (Independent Auditor's Report) that as per the Balance Sheet placed at page 1105, its Long Term Borrowings increased from ₹ 386.54 crore as on 31.03.2017 to ₹ 475.22 crore as on 31.03.2018. As per the Cash Flow Statement placed at page 1107 its cash flow showed a decrease from ₹ 15.12 Crores as on 31.03.2017 to ₹ 4.48 Crore as on 31.03.2018. Its losses as given at page 1115 show an increase from ₹ 20.11 crore as on 31.03.2017 to ₹ 29.10 crore as on 2017-18. Thus it is seen that the Company been showing increasingly borrowings and losses, and reducing cash flow over the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Professional is provisionally eligible to be appointed as IRP, and it is a fit case to admit to initiate CIRP against the Corporate Debtor by appointing IRP, imposing moratorium etc. 21. In view of the above facts and circumstances of the case, and by exercising powers conferred on this Adjudicating Authority, under proviso (5) (a) of Section 7, and other extant provisions of the IBC, 2016, the following orders are passed: (1) C.P.(IB) No. 389/BB/2019 is hereby admitted by initiating Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Skylark Mansions Pvt. Ltd., Corporate Debtor; (2) Mrs. Ramanathan Bhuvaneshwari, bearing LP. Regn. No. IBBI/IPA-002/IP-N00306/2017-18/10864, who is qualified Resolution Professional, is hereby appointed as Interim Resolution Professional, in respect of the Corporate Debtor to carry on the functions as mentioned under the Insolvency and Bankruptcy Code, 2016 and various rules issued by IBBI from time to time; Her fee is fixed at Rs. One Lakhs per month; (3) The following moratorium is declared prohibiting all of the following, namely: a) the institution of suits or continuation of pending suits or proceedings agains ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
