2019 (10) TMI 1251 - Tri - Insolvency and Bankruptcy

Tribunal Admits Insolvency Application, Declares Moratorium

The Tribunal admitted the application under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Corporate Debtor M/S RX. Jain Construction ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment - existence of debt and dispute or not - HELD THAT:- The Allahabad Bank has assigned these loans to this applicant under the Deed of dated Registration No. BDRI-8205-2017, filed and marked as 'Exhibit L' along with the application. The applicant has also filed statement of accounts and annexed as 'Exhibit G'. The applicant states that sum of ₹ 28,64.67,561/- is due and payable from the Corporate Debtor to the applicant. All the loan documents are also filed along with this application - There is nothing on record to show that pending against proposed IRP. The debt and default are proved beyond reasonable doubts. The application filed by the Financial Creditor under Section 7 of the Insolvency & Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the Corporate Debtor M/s RK. Jain Construction (India) Pvt. Ltd. is hereby admitted - Moratorium is declared for the purposes referred to in Section 14 of the Insolvency & Bankruptcy Code, 2016. Issues:- Initiation of Corporate Insolvency Resolution Process against the Corporate Debtor M/S RX. Jain Construction (India) Pvt. Ltd.- Admission of the application under Section 7 of the Insolvency & Bankruptcy Code, 2016.- Declaration of moratorium and public announcement.- Appointment of Interim Resolution Professional.- Convening a Committee of Creditors and submission of Resolution Plan.- Communication of the Order to relevant parties.The application was filed by M/S ASREC (India) Limited seeking the initiation of Corporate Insolvency Resolution Process against the Corporate Debtor M/S RX. Jain Construction (India) Pvt. Ltd., a company registered under the Companies Act, 1956. The respondent, Corporate Debtor, was duly served notice, but no representations were made. Despite publication in newspapers, there was no response from the Corporate Debtor, leading to an ex-parte decision. The Applicant, an Asset Reconstruction Company, had acquired the loans from Allahabad Bank, which were secured by movable and immovable properties. The total due amount from the Corporate Debtor to the Applicant was stated to be &8377; 28,64,67,561. The Financial Creditor recommended an Interim Resolution Professional (IRP) for the case.The Tribunal found the debt and default to be proven beyond reasonable doubt, leading to the admission of the application under Section 7 of the Insolvency & Bankruptcy Code, 2016. Consequently, a moratorium was declared, and public announcements were ordered in accordance with relevant sections of the Code. The moratorium prohibited various actions against the Corporate Debtor, including legal proceedings and asset transfers. Essential supplies to the Corporate Debtor were mandated to continue during the moratorium period. The Order of moratorium was to remain in effect until the completion of the Corporate Insolvency Resolution Process, subject to approval of a Resolution Plan or liquidation by the Adjudicating Authority.Shri Vinodkumar Pukhraj Ambavat was appointed as the Interim Resolution Professional to ascertain creditor details and convene a Committee of Creditors for developing a Resolution Plan. The Resolution Professional was directed to convene a meeting of the Committee of Creditors within a specified timeframe and identify a prospective Resolution Applicant. The Registry was instructed to communicate the Order to relevant parties, and the Interim Resolution Professional was required to file a Progress Report by a specified date. The matter was listed for further proceedings on a specific date, with the issuance of a certified copy of the order upon formalities' completion.