TMI Blog2022 (5) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... h the submissions made by the Petitioner/Financial Creditor, this Adjudicating Authority is inclined to admit the instant Application. The instant application is hereby admitted and this Adjudicating Authority orders the commencement of the Corporate Insolvency Resolution Process (CIRP) which shall ordinarily be completed within the timelines stipulated in the IB Code, 2016 (as amended), reckoning from the day of this order is passed. - CP (IB) No. 324/7/HDB/2020 - - - Dated:- 6-5-2022 - Bhaskara Pantula Mohan, Member (J) And Dr. Binod Kumar Sinha, Member (T) For the Appellant : Dishit Bhattacharjee For the Respondents : R. Rajendra Prasad ORDER 1. Under consideration is a Company Application filed by Canara Bank (in short Petitioner/Financial Creditor ) under section 7 of the Insolvency and Bankruptcy Code, 2016 (in short IB Code, 2016) read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. A.L. Sudershan Constructions Company Limited, (in short, Respondent/Corporate Debtor'). 2. Brief facts of the case as submitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese said OTS proposals were nowhere equivalent to the total outstanding debt amount. h) Subsequently, the Corporate Debtor also sent multiple OTS requests to the Financial Creditor dated 13.07.2021, 03.08.2021, 31.12.2021, 04.01.2022 and 13.01.2022. That the Financial Creditor rejected all the above said OTS proposals as they were not financially viable. i) The amount in claim as per instant Application is Rs. 239,51,53,055.83/-. Reiterating the above, learned counsel for the Financial Creditor prayed to admit the instant Application. 3. Counsel for the Corporate Debtor filed counter stating as under:- a) That the Bank filed an affidavit with petition dated 22.03.2018, before the Hon'ble City Civil Judge at Bangalore in Arbitration suit No. 5/2015, stating that Bank Guarantee's amounting to Rs. 18,80,38,000/- were paid to National Highway Authority of India on 17.11.2008. The alleged acknowledgement letter dated 30.06.2008 shows that an amount of Rs. 4,24,10,221/- was due as on 30.06.2008 towards B.G. It is evident from the above that the alleged acknowledgment letter dated 30.06.2008 does not correspond or relate to the alleged amount claimed in Part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an OTS, wherein it was agreed that after selling the properties of the family members of the Directors, the balance amounts shall be paid from the amounts realized from the awards passed by the Arbitrators. As per the said sanction, the sale of the properties was successfully completed, but the award amounts did not materialize till date. e) Though the Arbitration award with respect to Tumkur work was partly allowed in the year 2014, NHAI had gone on appeal before the City Civil Court Bangalore and after the same is dismissed, NHAI has carried the matter before the Hon'ble High Court of Karnataka and the same is pending till date. f) That the Financial Creditor in the year 2019 filed O.A. No. 547 of 2019 and after the Corporate Debtor has filed its Written Statement, the Financial Creditor in the year 2020 knowing that the same will not sustain, withdrew the said OA. g) That the Financial Creditor has invoked the provisions of the Insolvency and Bankruptcy Code, 2016 as a money recovery measure, without maintaining proper accounts statements. The Financial Creditor having failed to show the payments received from the Corporate Debtor in its Statement of Account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be. 7. After hearing both sides and perusing record, we are of the view that in the instant case there is a 'financial debt' and there has been a default' in repayment of the same and the said default is far more than Rs. 1 Crore. Thus, this Adjudicating Authority is satisfied that the Financial Creditor has proved its case by placing evidence that default has occurred for which the Corporate Debtor was liable to pay. Hence, the contentions of the Corporate Debtor are overruled. 8. Further the Financial Creditor has fulfilled all the stipulations as required under the provisions of the IB Code, 2016 for the purpose of initiating Corporate Insolvency Resolution Process. In these circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv. The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. v. Notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, concessions, clearances or a similar grant or right during the moratorium period. 14. The supply of essential goods or services of the Corporate Debtor shall not be terminated or suspended or interrupted during moratorium period. Further, if the IRP considers supply of any goods or services critical to protect and preserve the value of the corporate debtor and manage the operations of such corporate debtor as a going concern, then the supply of such goods or services shall not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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