TMI Blog2021 (5) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... pay its outstanding liabilities due to cash crunch. However, the Respondent failed to pay its admitted debt despite its best efforts and thus filed IA No. 92 of 2021 by seeking to initiate CIRP as prayed for. The Debt and Default in question are not disputed by the Respondent - Application allowed - moratorium declared. - C. P. (IB) No. 204/BB/2020 - - - Dated:- 23-3-2021 - Rajeswara Rao Vittanala, Member (J) And Ashutosh Chandra, Member (T) For the Appellant : K. Dushyantha Kumar, PCS For the Respondents : K. Chethan Kumar ORDER Rajeswara Rao Vittanala, Member (J) 1. C.P.(IB) No. 204/BB/2020 is filed by M/s. Algae Apparels (Petitioner/Financial Creditor), U/s. 7 of IBC, 2016, R/w. Rule 4 of I B (AAA) Rules, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allments as to the loan due to its financial difficulties. The default of the Corporate Debtor amounts to ₹ 2,48,95,572.83/- to the Applicant which includes principal amount and interest @10%. Hence, the instant Petition is filed for seeking to initiate CIRP in respect of the Corporate Debtor. 3. The Respondent has filed Reply dated 15.01.2021, by inter alia contending as follows: (1) The Corporate Debtor is not able to successfully carry out business as enumerated in its Memorandum of Association and is also not in a position to honour its financial commitments and the revenue generation is not at an expected rate. Further, the assets of the Corporate Debtor are not sufficient to pay off its liabilities. The assets of the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Petitioner, while pointing out various averments made in the Company Petition and IA No. 92 of 2021, has further submitted that the debt and default in question are admittedly not in dispute and the Respondent failed to adhere to the orders passed by the Adjudicating Authority. And the instant Petition is filed in accordance with law, and also suggested a qualified Insolvency Professional namely Shri Venkata Subbarao Kalva, with Reg. No. IBBI/IPA-002/IP-N00179/2017-18/10655, who has filed his written Consent in Form-2 on 06.10.2020, by inter alia declaring that no disciplinary proceedings pending against him with the Board or ICSI Insolvency Professionals Agency. Therefore, he has urged the Adjudicating Authority to restore the case an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. IBBI/IPA-002/IP-N00179/2017-18/10655, who has filed his written Consent in Form-2 on 06.10.2020,- by inter alia declaring that no disciplinary proceedings pending against him with the Board or ICSI Insolvency Professionals Agency; he is currently serving as Liquidator in One (01) Liquidation Proceedings. Therefore, he is provisionally eligible to be appointed as IRP. Hence, the Instant Company Petition is fit case to admit by initiating CIRP by appointing IRP, and declaring moratorium etc., in respect of the Corporate Debtor. 9. In view of the above facts and circumstances of the case, and by exercising powers conferred on this Adjudicating Authority, U/s. 9(5)(i) and other extant provisions of the IBC, 2016, we hereby admitted C.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f essential goods or services to the Corporate Debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period; f) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator; g) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process; (3) The IRP is directed to follow all extant provisions of the IBC, 2016, and all extant rules including fees rules as framed by IBBI from time to time. The IRP is hereby directed to file progress reports to the Adjudicating Authority from time to time. (4) The Boa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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