TMI Blog2020 (2) TMI 1588X X X X Extracts X X X X X X X X Extracts X X X X ..... d facts, the Corporate Debtor has to be admitted in CIRP. However, the Corporate Debtor took defence that debt has been illegally assigned in favour of the Financial Creditor. The Hon'ble NCLAT in case of Lalan Kumar Singh, Executive Director shareholder of GPI Textile Ltd. Vs. Phoenix ARC Pvt. Ltd. Anr. [ 2018 (12) TMI 1648 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL] clearly held on similar set of facts that, In present case we find that the appellant has sought declaration that the assignment made by HSBC to 'Phoenix' as illegal, which can be raised only in a civil suit. The appellant is trying to convert the proceedings under the 'I B Code' as civil proceedings akin to a trial which is not the legislative in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Bank granted and disbursed in favour of the Corporate Debtor term loan and cash credit facility to the extent of ₹ 25 Crore vide sanction letter dated 25.09.2015 (Annexure L, page No. 146). The loan account was declared NPA on 31.12.2016. On 17.03.2017, the Bank executed deed of assignment in favour of the Financial Creditor and transferred the right to recover the debt from the Corporate Debtor along with interest. 2.2 The Financial Creditor states that upon getting right to recover above debt from the Corporate Debtor, it has called upon the Corporate Debtor to clear outstanding amount but the Corporate Debtor did not pay the same. As the Corporate Debtor committed default in paying the debt as above, this application is fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord that such defence is not available to the Corporate Debtor in this proceeding under the Insolvency and Bankruptcy Code. In the Ruling of Hon'ble Apex Court in case of Innoventive Industries Limited Vs. ICICI Bank- (2018) 1 SCC 407, it has been held - On the other hand, as we have seen, in the case of a corporate debtor who commits a default of a financial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the financial creditor to satisfy itself that a default has occurred. It is of no matter that the debt is disputed so long as the debt is due i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well within time. It is defect free. Hence, we admit the Corporate Debtor in CIRP with following orders: - ORDER i) The application filed by the Financial Creditor under section 7 of the Insolvency Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the Corporate Debtor, M/s. Limtex Agri Udyog Limited is hereby admitted. ii) We declare a moratorium and public announcement in accordance with Sections 13 and 15 of the IBC, 2016. iii) Moratorium is declared for the purposes referred to in Section 14 of the Insolvency Bankruptcy Code, 2016. The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for the submission of claims under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporate insolvency resolution process. viii) Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of corporate debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be. ix) Necessary public announcement as per Section 15 of the IBC, 2016 may be made. x) Mr. K.G. Somani having registration No. IBBI/IPA-001/IP-P00300/2017-18/10544, of 4th Floor, 3/15 Asaf Ali Road, New Delhi, National Capital Territory of Delhi, 110002 having e mail ID: kgsomani@gmail.com is appointed as Interim Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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