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TMI Blog2019 (4) TMI 2159X X X X Extracts X X X X X X X X Extracts X X X X ..... nter alia seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/s .ILC Industries Limited,(Respondent/Corporate Debtor)for committing a default in payment of Rs. 25,13,97,045/- date of default on 29.12.2013. 2. Brief facts of the case, as mentioned in the Company Petition, which are relevant to the issue, are as follows: 1) M/s. Elite Brilliant Limited(Petitioner/Operational Creditor) is a private limited Company, CIN No. 51927811 having its registered office at Suite 1101, 11/F, Supreme House, 2A Hart Avenue Kowloon, Hong Kong. 2)M/s. ILC Industries Limited, (herein after referred as Respondent/Corporate Debtor) is a private limited was incorporated on 13.12.2000. Its nominal share Capital is Rs.5 Crore. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders for maize on it, which it did not deliver. 7) The Corporate Debtor, despite several extensions of time and reminders has not returned the sums advanced to the Operational Creditor. Presently, a sum of Rs.25.13 Crore is due from the Corporate Debtor. 8) Accordingly, the Operational Creditor was obliged to issue a Legal Notice in Form-3 dated 21.06.2018 upon the Corporate Debtor. Instead of making an attempt to repay the sum of Rs.25.13 Crore to the Operational creditor, the Corporate Debtor has issued a Reply dated 28.06.2018, by inter alia admitting the debt has expressed inability to repay the debt on account of their bank accounts being attached by the Income Tax Department. ....The letter dated 21.06.2018 states that we owe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orting the said ore/products through major Indian ports. 2) The Corporate Debtor contacted the Operational Creditor with a proposal to supply iron ore conforming technical specifications, as required by the latter, on a regular basis. The parties subsequently entered into a MoU dated 29.04.2010 whereby, the mode of supply and terms of payment were determined. This understanding was valid between the period April 2010 to March, 2011. 3) In terms of the argument between the parties, the Corporate Debtor was instructed by the Operational Creditor from time to time on the quantity of iron ore and related products that the latter required and the same would be sold by the Debtor, under the cover of various invoices. The purchase orders issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... economic instabilities surrounding these sectors, the suppliers of the Corporate Debtor were unable to meet the demand raised by the Creditor. The Corporate Debtor was also unable to find alternate suppliers in the market since the entire industry was affected. Generally, all the purchases of iron ore in the industry will require bulk advances that goes to the individual suppliers. The Corporate Debtor had also advanced in huge amounts to the corresponding suppliers of ore who in turn defaulted their supplies due to sudden collapse in the mining industry. 7) For the period after March 2011, the Corporate Debtor tried to produce and supply iron ore to the Creditor from other states like Goa and Andhra Pradesh where the exports were still a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Corporate Debtor has been unable to fulfill the demands raised by the Operational Creditor and is liable to return the advances to the latter after taking into consideration the terms and conditions of the MoU. It is also pertinent to note that the Petitioner has a right of alien over the stock that is lying at various Ports and the Stock that is lying at EOU plot of the Corporate Debtor at Bevinahalli EOU unit. The Creditor has an efficacious remedy. 4. Heard Shri Ian Lewis, learned Counsel for Petitioner and Shri C.K. Nanda Kumar along with Shri Varun. S, Learned Counsel for Respondent. We have carefully perused the pleadings of both the parties and also extant provisions of law. 5. Shri Ian Lewis, learned Counsel for the Petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6, the following orders are passed: 1) CP(IB)No. 155/BB/2018 is hereby admitted by initiating Corporate Insolvency Resolution Process (CIRP) in respect of M/s. ILC Industries Limited, Corporate Debtor; 2) We hereby appointed Mr. Ravindranath Narayana Rao is named as IRP with Registration No. IBBI/IPA-001/IPP00645/ 2017-18/11099, is hereby appointed as Interim Resolution Professional, in respect of the Corporate Debtor to carry on the functions as per provisions of Code and various rules issued by IBBI from time to time. 3) The following moratorium is declared prohibiting all of the following, namely: a. the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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