2019 (6) TMI 1505 - Tri - Insolvency and Bankruptcy

Tribunal Admits Application for Corporate Insolvency Resolution Process

M/s Esspee Sarees Pvt. Ltd. Versus M/s Skipper Textiles Pvt. Ltd.,

The Tribunal admitted the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for Corporate Insolvency Resolution Process. A ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- In this case, the Corporate Debtor denied the fact that Financial Creditor has really disburse loan amount to them. To prove the fact that loan was actually disbursed to the Corporate Debtor, the Financial Creditor produced on record certified copy of Statement of Bank Account bearing no. 200998962032maintained by Induslnd Bank. Sl. No. 1 in the Bank Statement, Annexure F-2 to the Petition shows that a sum of ₹ 1,00,00,000/- was transferred to the Corporate Debtor's account by the Financial Creditor by way of RTGS dated 03.04.2018. It proves the Financial Creditor gave corporate loan to the Corporate Debtor as contemplated under Section 186 of the Companies Act, 2013. In view of this, evidence on record, it was for the Corporate Debtor to explain as to how and in relating to what transaction they received sum of ₹ 1,00,00,000/- from the Financial Creditor. They did not explain. In view of evidence on record, it is held that Financial Creditor proves that there is a financial debt of more than Rupees One Crore due and payable by the Corporate Debtor which they did not pay and committed default. This application is referred to be admitted. Application admitted - moratorium declared. Issues:1. Application under Section 7 of Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process.2. Proof of debt due and payable by the Corporate Debtor.3. Default by the Corporate Debtor in paying the debt.4. Appointment of Interim Resolution Professional.Analysis:Issue 1: Application under Section 7 of Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution ProcessThe Financial Creditor filed an application under Section 7 against the Corporate Debtor for defaulting on a financial debt of over Rupees One Crore. The Financial Creditor provided evidence of disbursing a corporate loan to the Corporate Debtor, triggering the need for Insolvency Resolution Process.Issue 2: Proof of debt due and payable by the Corporate DebtorThe Financial Creditor substantiated the debt claim by presenting a certified bank statement showing the transfer of Rupees One Crore to the Corporate Debtor's account as a loan. The Corporate Debtor failed to refute this evidence, leading to the conclusion that a financial debt was indeed due and payable by the Corporate Debtor.Issue 3: Default by the Corporate Debtor in paying the debtThe Corporate Debtor, through its director, contested the liability to repay the loan amount, demanding proof of disbursal. However, the evidence presented by the Financial Creditor clearly demonstrated the transfer of funds, establishing the default by the Corporate Debtor in repayment of the financial debt.Issue 4: Appointment of Interim Resolution ProfessionalThe Financial Creditor proposed the appointment of Mr. Pradeep Kumar Goenka as the Interim Resolution Professional. The Tribunal found the application to be defect-free and approved the appointment, initiating the Corporate Insolvency Resolution Process and declaring a moratorium as per the provisions of the Insolvency and Bankruptcy Code, 2016.The Tribunal admitted the application, declared a moratorium, and appointed Mr. Pradeep Kumar Goenka as the Resolution Professional. The order outlined the restrictions during the moratorium period and directed the Resolution Professional to conduct the Corporate Insolvency Resolution Process efficiently. The Registry was instructed to communicate the order to all relevant parties, with a follow-up progress report scheduled for a later date.