TMI Blog2021 (10) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... uous losses incurred by it. The Petition made by the Financial Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is more than the minimum amount as stipulated under section 4(1) of the Code at the relevant time. Therefore, the default stands established and there is no reason to deny the admission of the Petition. Given this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor. Petition admitted - moratorium declared. - CP (IB) No. 68/KB/2021 - - - Dated:- 8-10-2021 - Rajasekhar V.K., Member (J) And Satya Ranjan Prasad, Member (T) For the Appellant : Debaleena Ganguly and Debabrata Ganguly, Advocates For the Respondents : Shaunak Mitra, Advocate and Neha Somani, PCS ORDER Rajasekhar V.K., Member (J) 1. Consequent upon the recusal by Mr. H.C. Suri, Member (Technical), this Special Bench was constituted with the approval of the Hon'ble Acting President In terms of the order No. NIL dated 06.09.2021 issued by NCLT Headquarters. 2. This is a petition filed under section 7 of the Insolven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expiry of one year bearing interest quarterly for the period from 30.06.2015 to 29.06.2016 at the rate of 12% per annum till the repayment value were to be received. The term further provided for a promissory note of the said principal amount drawn by the Corporate Debtor in favour of the Financial Creditor. A copy of the sanction letter is annexed with the Petition at page 22 and marked as Annexure I Exhibit E. (e) On 30.06.2015, the Financial Creditor transferred the sum of ₹ 1,70,00,000/- (Rupees one crore seventy lakh only) from its beneficiary account with Shamrao Vithal Co-operative Bank Ltd., account No. 100904180003058 to the Corporate Debtor which was accepted by the Corporate Debtor vide letter dated 03.07.2015. A copy of the acceptance letter is annexed with the Petition at page 23 and marked as Annexure I Exhibit F. (f) The Corporate Debtor also drew a demand promissory note worth ₹ 1,70,00,000/- (Rupees one crore seventy lakh only) in favour of the Financial Creditor. A copy of the demand promissory note is annexed with the Petition at page 24 and marked as Annexure I Exhibit G. (g) The financial statements of the Corporate Debtor reflect th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are that the Corporate Debtor has sought reasonable time from the Financial Creditor to make the payment. However, the Financial Creditor has refused to do so and has filed the present Petition with ulterior motive and mala fide intent. (b) Proceedings under section 7 of the Code ought not to be permitted to be misused as a substitute for a civil action for the recovery of money. However, the instant Petition has been instituted to recover money from the Corporate Debtor and not for resolution of insolvency. (c) The Petition is time-barred for the default as per paragraphs (d) and (g) occurred one year from the date of disbursement which is 30.06.2016, further, there are several defects in the revised Petition. (d) The corporate Debtor is one of the oldest sugar manufacturers in India that was making a profit, however, due to various circumstances, it started incurring loss in 2011. The account of Corporate Debtor with its bank was declared as Non-Performing Assets (NPA) in September 2018. (e) The bankers allowed a holding on operation, however, it retained 10% of the sugar sale receipts. As a result, the Corporate Debtor was left with a paltry percentage of its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred by it. 12. The Financial Creditor has proposed the name of Mr. Neeraj Jain, having registration number IBBI/IPA-001/IP-P01067/2-017-2018/11758, e-mail: reachneerajjain@gmail.com as the Interim Resolution Professional of the Corporate Debtor. The proposed Interim Resolution Professional has given his written communication in Form 2 as required under rule 9(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 along with a copy of the certificate of registration. 13. The Petition made by the Financial Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is more than the minimum amount as stipulated under section 4(1) of the Code at the relevant time. Therefore, the default stands established and there is no reason to deny the admission of the Petition. Given this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor. 14. It is, accordingly, hereby ordered as follows:- a. The Petition bearing CP (IB) No. 68/KB/2021 filed by Anit Finvest Private Limited, the Financial Credito ..... X X X X Extracts X X X X X X X X Extracts X X X X
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