TMI Blog2020 (6) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... r admits that the Debtor has repaid an amount of ₹ 25 lakh against ICD 1 and that the same was renewed on 14.04.2018 for the balance amount. Thus part of the debt had been repaid, but default occurred towards principal and interest on different dates. As per the Petition, debt of ₹ 1,44,32,054.80 remains unpaid against both the ICDs. The Corporate Debtor has given an undertaking that it has made arrangements for paying the debt and only requires some more time to settle the debt. Also, the impact of the present financial distress caused by the global novel corona virus pandemic necessitating a nationwide lockdown, cannot be ignored. Modifications and suspension of various provisions of the Code have been initiated so that com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is filed by Anjana Syntex Company Limited (hereinafter referred to as 'Petitioner / Financial Creditor') U/s 7 of the IBC, 2016, R/w Rule 4 of the I B (AAA) Rules, 2016, by inter 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 ₹ 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 ₹ 19,32,054.80 (Rupees Nineteen Lakh Thirty Two Thousand fifty Four and Paise Eighty only) calculated @16% p.a. on principal amount of ₹ 1,25,00,000/- (Rupees One Crore Twenty Five Lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is submitted that various State Electricity Distributors owe ₹ 98,66,82,995/- to the Respondent. Copy of Sundry Debtors of the Company as on 20.01.2020 is annexed to the Petition. 8. It is admitted by the Respondent that the ICD has 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 ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have approached this Tribunal. Since the Corporate Debtor is in the business of generating and selling power, its liabilities are paid out of its periodical receipts. 13. It is also relevant to note that the Hon'ble Supreme Court in the case of Mobilox Innovations 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 premat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have also been taken to ensure availability of more funds in the hands of businesses so that they can cope with the present economic scenario and restart their business. 15. In light of the above grim economic scenario and the facts of the instant case as brought on record and discussed 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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