TMI Blog2022 (8) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... (5)(a) of the Code, the present application is hereby, admitted - Moratorium declared. - Company Petition No. (IB) 228/(ND)/2022 - - - Dated:- 2-8-2022 - Dharminder Singh, Member (J) And Dr. Binod Kumar Sinha, Member (T) ORDER Dharminder Singh , Member ( J ) 1. The CVR Holdings Private Limited, has filed the instant application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for brevity 'the Code') read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity 'the Rules') with a prayer to trigger Corporate Insolvency Resolution Process in respect of respondent Company M/s. Intense Fitness and Spa Private Limited, referred to as the corporate debtor. 2. It is appropriate to mention that the applicant M/s. CVR Holdings Private Limited is a company registered under the provisions of the Companies Act, 1956 on 13.03.2006 having its registered office situated at 6/1, Druvatara Buildings, Somajiguda, Hyderabad-500092. Mr. Navin Chandra Joshi, duly authorized on behalf of applicant vide Resolution dated 02.03.2022, has preferred the present application on behalf of the applicant for initia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... December 2020, the Applicant wrote to the Corporate Debtor seeking information on the status of the repayment. It is stated that on 11 December 2020, the Corporate Debtor responded to the Applicant, seeking an extension on the repayment of the loan till 31 December 2021. Furthermore, the Applicant responded to the Corporate Debtor on 23 December 2020, extending the interest-free period for repayment of the loan till 31 March 2021. d. On 6 April 2021, following the second wave of Covid-19 cases and subsequent to the nationwide lockdown, the Corporate Debtor again requested for an extension of the interest-free repayment period till 30 June 2021. And in response, the Applicant extended the interest-free repayment period till 13 April 2021. e. It is further submitted that on 26 December 2021, the Applicant admittedly sent a letter to the Corporate Debtor demanding repayment of the amount by 31 December 2021. Reminders regarding this repayment was sent by the Applicant on 7 January 2022 and 5 February 2022. 6. Sub-section (3)(b) of Section 7 mandates the financial creditor to furnish the name of an interim Resolution Professional. In compliance thereof the applicant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has itself acknowledged committing default in repayment of loan and admitting its liability towards the applicant herein. 9. Needless to say, that an application under Section 7 of the Code is maintainable if the debt is proved to be due and there is default. In view of the Section 4 of the Code, the moment default is of Rupees one hundred lakhs or more, an application to trigger Corporate Insolvency Resolution Process under the Code is maintainable. 10. The applicant clearly comes within the definition of Financial Creditor. The material placed on record as stated in the paras above further confirms that respondent has debt due and has committed default in repayment of the outstanding financial debt. On a perusal of Form-I filed under Section 7 of the Code read with Rule 4 of the Rules shows that the form is complete and there is no infirmity in the same. It is also seen that there is no disciplinary proceeding pending against the proposed Interim Resolution Professional. 11. We are satisfied that the present application is complete in all respect. The applicant financial creditor is entitled to move the application against the corporate debtor in view of admitted outstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this application under Section 7 of the Insolvency Bankruptcy Code, 2016. 16. We direct the applicant Financial Creditor to deposit a sum of Rs. 2 Lakhs with the Interim Resolution Professional namely Mr. Jagdish Singh Nain to meet out the expenses to perform the functions assigned to him in accordance with Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016. The needful shall be done within three days from the date of receipt of this order by the Financial Creditor. The said amount however is subject to adjustment towards Resolution Process cost as per applicable rules. 17. We also declare moratorium in terms of Section 14 of the Code. The necessary consequences of imposing the moratorium flows from the provisions of Section 14(1)(a), (b), (c) (d) of the Code. Thus, the following prohibitions are imposed: 18. It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Central Government or the supply of the essential goods or services to the Corporate Debtor as may be specified, are not to be terminated or suspended or interrupted during ..... X X X X Extracts X X X X X X X X Extracts X X X X
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