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TMI Blog2020 (6) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... r alia seeking to initiate the Corporate Insolvency Resolution Process (CIRP) in respect of Bhoruka Power Corporation Ltd., (hereinafter referred to as 'Corporate Debtor / Respondent') claiming a sum of Rs. 1,44,32,054.80 (Rupees One Crore Forty Four Lakh Thirty Two Thousand Fifty Four and Paise Eighty Only) as on 25.11.2019, which includes interest of Rs. 19,32,054.80 (Rupees Nineteen Lakh Thirty Two Thousand fifty Four and Paise Eighty only) calculated @16% p.a. on principal amount of Rs. 1,25,00,000/- (Rupees One Crore Twenty Five Lakh only). 2. The Petitioner submits that it granted loan amounting to Rs. 1,50,00,000/- (Rupees One Crore Fifty Lakh only) vide 2 Inter-Corporate Deposits being ICD- 1 and 2 disbursed on 17.04.2017 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not been repaid within the stipulated period. However, the major secured creditor, L & T Finance, is providing working capital funds to settle the outstanding dues of the Petitioner at an agreed settlement rate. 9. It is further submitted by the Respondent that it has settled the dues amounting to Rs. 36,81,38,388/- (Rupees Thirty Six Crore Eighty One Lakh Thirty Eight Thousand Three Hundred and Eighty Eight only) to over 24 Financial and Operational Creditors who have approached this Bench. The Respondent has sought for some additional time stating that the dues of the Petitioner will be settled at the earliest. 10. Heard Mr. Saji P. John, learned Counsel for the Petitioner and Mr. Shashi Kiran Shetty, learned Senior Counsel for the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Private Limited v. Kirusa Software Private Limited 2018 (1) SCC 353 has inter alia held that the I & B Code, 2016 is not intended to be a substitute to a recovery forum and cannot be used to jeopardise the financial health of an otherwise solvent company by pushing it into insolvency. It is also pertinent to mention that the Hon'ble Supreme Court in the case of K. Kishan v. Vijay Nirman Company Private Limited1 clarified that the Petitioners cannot use IBC either prematurely or for extraneous considerations or as substitute for debt enforcement procedures. No case has been made out by the Petitioner that the Respondent has become insolvent or has lost its substratum such that it cannot pay its debts or run its business. On the other h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed above, we are of the considered view that the Corporate Debtor's plea that it be given some more time to repay the debt needs to be accepted, and the Respondent/Corporate Debtor be directed to settle the debt at the earliest in consultation with the Petitioner/Financial Creditor. The Ld. Counsel for the Petitioner has insisted that the Corporate Debtor may be directed to clear the debt within 10 days. However, considering the amount involved and the present economic scenario, we are of the view that it would be fair to allow the Corporate Debtor some more time. 16. In the result, C.P. (IB) No. 413/BB/2019 is disposed of by directing the Respondent to repay the balance debt or the amount as settled with the Petitioner, within a per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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