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TMI Blog2022 (7) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... uptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity 'the Rules') by Bank of India (for brevity 'Financial Creditor') through its Authorised Signatory, Mr. Harish V, who has been duly authorised vide Power of Attorney dated 05.11.2019 for initiating Corporate Insolvency Resolution Process (CIRP) against Future Retail Limited (for brevity 'Corporate Debtor') for default in repaying an amount of Rs.856.10 Crores (Indian Rupees Eight Hundred and Fifty-Six Crores and Ten Lacs), as on 31.12.2021. 2. On perusal of the Company Petition, it reveals that the Corporate Debtor is a public listed company engaged in the business of multi-brand retail and operating stores across the Country. The Financial Creditor has provided the vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order dated 03.09.2020, the asset classification was maintained as standard and account was not downgraded on 30.11.2020, although the default persisted. Meanwhile on 27.09.2020, the Corporate Debtor issued a letter to the Financial Creditor and certain other lenders, applying for one-time restructuring the facilities under the "Resolution Framework for Covid-19 related stress" (for brevity "RBI Circular") dated 06.08.2020, which permits one-time restructuring in respect of eligible borrowers facing stress on account of Covid-19. The request was considered by the Lenders (including the Financial Creditor) allowing one-time restructuring under the RBI Circular on 29.10.2020. The Corporate Debtor and the Lenders (including the Financial Cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercial Credit Information Report maintained by Trans Union CIBIL bank account statement; True copies of the certified statement of accounts maintained by the Financial Creditor/Applicant Bank showing entries of disbursement of amount to Corporate Debtor and Certificate in terms of Section 2A of the Bankers Book Evidence Act, 1891. The list of other documents attached to this application in order to prove the existence of Financial debt are as: i.) A copy of the Annual Report of the Corporate Debtor for the FY 2020-2021 ii.) Letter dated 27.09.2020 and 31.12.2021 issued by the Corporate Debtor to the Financial Creditor. iii.) Default notice dated 05.01.2022. iv.) Resolution dated 11.01.2022, passed by the Board of Directors of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, as it has been duly heard by the Hon'ble Apex Court. Further, the Financial Creditor relied on Atma Ram Properties (P) Ltd. v. Federal Motors (P) Ltd. (2005) I SCC705 and submitted that it is well settled that mere preferring of an appeal does not operate as stay on the decree or order appealed against nor on the proceedings in the court below. Hence, the pendency of a Writ Petition before the Hon'ble Supreme Court cannot operate as a reason for staying the present Petition. Further on the day of Final hearing, the Senior Counsel for the Petitioner argued that the existence of a dispute is not relevant for the purpose of admitting a Petition under Section 7 of the Code and relied on Innoventive Industries Ltd. Vs. ICICI Bank and A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. 7. As per the records, the Amazon.com NV Investment Holdings LLC has filed an Intervention Petition/1/2022 in CP/527/MB/2022 seeking investigation into fraudulent and malicious intention of the present proceedings by the Financial Creditor and to dismiss the present petition by imposing penalty on the Financial Creditor and the Corporate Debtor in accordance with Section 65(1) of the Code, same has been dealt separately vide order dated 20.07.2022. Moreover, the Corporate Debtor on the payment obligation under the OTR scheme, admitted the default of its repayment as on 31.12.2021. Further, on 04.02.2022, the Corporate Debtor admitted in its meeting with the Lenders that the Events of default continue to subsist. Furthermore, the Corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n amount of Rs. 5 Lakh towards the initial CIRP cost by way of a Demand Draft drawn in favour of the Interim Resolution Professional appointed herein, immediately upon communication of this Order. d. That this Bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority, transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover enforce any security interest created by the corporate debtor in respect of its property including any action ..... X X X X Extracts X X X X X X X X Extracts X X X X
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