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2022 (7) TMI 1186

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....021 stands closed. B.IBA/706/2020 This Application has been filed by one RELIANCE NET LIMITED (hereinafter referred to as "Financial Creditor') on 20.11.2020 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 MAAN SAROVAR PROPERTIES DEVELOPMENT 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 is seen that the Financial Creditor is a public company limited by shares incorporated under the Companies Act, 1956. The verifying Affidavit in support of this present Application is placed at Page 10 of the Application typeset. 3. Part II of the Application lays down the details of the Corporate Debtor. As per the Application the Corporate Debtor is a Private Limited company incorporated under the Companies Act, 1956 on 04.02.1992 with CIN: U45201TN1992PTC022124. The registered office of the Co....

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....pproached Financial Creditor with a request to restructure the repayment obligations of Corporate Debtor and other terms and conditions, including those in relation to the security, which request was accepted by Financial Creditor. Accordingly, Supplemental Loan Agreement dated 26.04.2013 ('Supplemental Loan Agreement") was entered into between Corporate Debtor as the Borrower, following persons as the Promoters of Corporate Debtor and Financial Creditor as the Lender on such terms and conditions as more particularly mentioned in the Supplemental Loan Agreement: a. Naveen Jain; b. Navneet Jain; c. Saikumar Jain; and d. Nalin Gulecha 9. The Ld. Senior Counsel for the Applicant submitted that, as per the Supplemental Loan Agreement Corporate Debtor and its Promoters agreed and undertook to that interest shall be payable @ 20% pa. from the date of Original Loan Agreement i.e. 23.12.2009 till date of Supplemental Loan Agreement i.e. 26.04.2013 on principal loan amount of Rs. 66,00,00,000/- (Rupees Sixty Six Crore). Further the Ld. Counsel submitted that, it was agreed between the parties that the entire Loan amount together with interest thereon @ 16% XIRR [Extended Intern....

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....64,226/- (Rupees one hundred and eighteen crore seventy lakh sixty four thousand two hundred and twenty six) along with interest. The Ld. Counsel submitted that in response to the Demand Notice issued by the Applicant the Respondent had issued a detailed reply statement dated 12.10.2020 and the same is placed as Annexure R20 of the Counter statement typeset in which the Respondent has categorically denied the alleged amount of debt owed i.e. Rs. 118,76,64,226/- (Rupees One Hundred and Eighteen Crore Seventy Lakh Sixty Four Thousand Two Hundred and Twenty Six) along with interest. 15. The Ld. Counsel for the Respondent submitted that IA/756/CHE/2021 was filed by the Applicant to amend the date of default in the main Application to 19.03.2015 and the same was allowed by this Tribunal by the order dated 07.01.2022. Further the Ld. Counsel submitted that this Application is hit by limitation as the Application has been filed with a delay of more than six years from the date of recall of the Loan. The Ld. Counsel for the Respondent pressed emphasis on the judgment of the Hon'ble Supreme Court in the case of BABULAL VARDHARJI GUJAR VS. VEER GURJAR ALUMINIUM INDUSTRIES PRIVATE LIMITE....

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....itation will come into play on the due acknowledgement of debt by the Corporate Debtor. The Application stands well within the period of limitation by the virtue of reflection of debt amount reflected in the Balance Sheet of the Corporate Debtor for the year ended on 01.09.2018 and the same shall be treated as acknowledgement of debt by the virtue of the Hon'ble Supreme Court judgment in ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED VS. BISHAL JAESWAL &. ANR, in Civil Appeal No. 323 OF 2021 [Supra], Further this Applicant has filed this present Application on 20.11.2020, thus this Application stands well within the period of limitation. 20. Further, 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 ....

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....isputed 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 date. It is only when this is proved to the satisfaction of the adjudicating authority that the adjudicating authority may reject an application and not otherwise. 21. In view of the facts as stated supra and also in view of the 'financial debt' which is proved by the Financial Creditor and the 'default' being committed on the part of the Corporate Debtor, this Tribunal is left with no other option than to proceed with the present case and initiate the Corporate Insolvency Resolution Process in relation to the Corporate Debtor. 22. As a consequence of the Application being admitted in terms of Section 7 of the Code, moratorium as envisaged under provisions of Section 14(1) and as extracted hereunder shall follow in relation to the Corporate Debtor; a. The institution of suits or continuation of pending suits or proceedings against the respondent including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; b. Transferring, encumbering, alienating or ....

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....reproduced below for ready reference; (4) The order of moratorium shall have effect from the date of such order till the completion of the Corporate Insolvency Resolution Process: 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. 25. The Financial Creditor has proposed the name of Ms. J. Karthiga (email id: karthigasri@hobnnail.com) with Reg. No. IBBI/IPA-001/IP-P00752/2017-2018/11284 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 Authorization for Assignment is granted to the said IRP till 20.02.2023. 26. The IRP is directed to take charge of the Corporate Debtor's management immediately. The IRP is also directed to cause public announcement as prescribed under Section 15 of the IBC, 2016 within three days from the date the copy of this Order i....