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TMI Blog2022 (6) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... oned. The counter is taken on record. Accordingly, IA/1186(CHE)/2021 is allowed. CP(IB)/203(CHE)/2021 This Application has been filed by one INDIAN OVERSEAS BANK, (hereinafter referred to as 'Financial Creditor') on 02.09.2021 under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I & B Code) r/w. Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, against ROSVAR STEELS PRIVATE LIMITED (hereinafter referred to as 'Corporate Debtor'). The prayer made is to admit the Application, to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, declare moratorium and appoint Interim Resolution Professional (IRP). 2. From Part-I of the Application, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Loan (Closed) 23.05.2016 13.45% 45000000.00 232189000/- 6. Part V of the application describes the particulars of Financial Debt, documents and the same is placed at Annexure - I of the Application typeset filed by the Financial Creditor. 7. In relation to Corporate Debtor, the Corporate Debtor had filed a counter wherein it was submitted that the Financial Creditor classified the account of the Corporate Debtor as fraud. Pursuant to the declaration of the Fraud account, CBI registered an FIR and have been investigating the matter. So far the CBI has not been able to identify any diversion of funds or any act that could tantamount to the account being named fraud. Therefore, the Respondent had filed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. Apropos, the Hon'ble Supreme Court in the case of Innoventive Industries Limited v. ICICI Bank Limited, where it has discussed extensively the scope of the Adjudicating authority under section 7 of the IBC is limited to assessing the records provided by the financial creditor to satisfy itself that the default has occurred. 28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor - it need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under sub-section (1) in such form and manner as is prescribed, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 30. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2002; d. The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the respondent. Explanation.-For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a licence, permit, registration, quota, concession, clearance 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 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 15. The Financial Creditor has proposed the name of Mrs. M. Jayasree, ([email protected]), Reg. No. IBBI/IPA-001/IP-P00733/2017-2018/11236 as the Interim Resolution Professional (IRP) who has also filed his consent in Form - 2 and also upon verification from the IBBI website, it is seen that the said person hold valid Authorization for Assignment till 28.11.2022. 16. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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