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of <h1>Tribunal admits petition by Punjab National Bank against Dream Merchant Content for defaulting on term loan.</h1> <h3>Punjab National Bank Versus Dream Merchant Content Private Limited</h3> The Tribunal admitted the Petition filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code against Dream Merchant Content ... Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- This Adjudicating Authority, on perusal of the documents filed by the Creditor, is of the view that the Corporate Debtor defaulted in repaying the loan availed and also placed the name of the Insolvency Resolution Professional to act as Interim Resolution Professional and there being no disciplinary proceedings pending against the proposed resolution professional, therefore the Application under sub-section (2) of Section 7 is taken as complete, accordingly this Bench hereby admits this Petition. Petition admitted - moratorium declared. Issues involved:Corporate Insolvency Resolution Process under Section 7 of Insolvency and Bankruptcy Code, 2016.Analysis:The judgment involves the Corporate Insolvency Resolution Process initiated by Punjab National Bank (Petitioner) against Dream Merchant Content Private Limited (Corporate Debtor) for defaulting on a term loan. The Petitioner provided evidence of the loan agreement, deed of hypothecation, guarantee agreement, and other relevant documents to support the outstanding amount of Rs. 66,58,63,415.41 as of 10.07.2019. The Corporate Debtor was declared a Non-Performing Asset (NPA) on 30.12.2007. The Petitioner also took action under the SARFAESI Act, 2002, seeking recovery of the outstanding amount and issued notices to the Corporate Debtor. The Petition was filed under Section 7 of the Code, and both parties were present during the proceedings.The Corporate Debtor contended that the Petitioner invoked the pledge of shares before declaring the account as NPA, causing harm to the Corporate Debtor's reputation. However, the Tribunal cited the Supreme Court decision in 'Innoventive Industries Ltd. Vs. ICICI Bank and Ors., - (2018) 1 SCC 407' to emphasize that such contentions are not relevant for admission under Section 7 of the Code.Upon reviewing the documents and Form-1 submitted by the Petitioner, the Tribunal found that the Corporate Debtor defaulted on the financial debt owed to the Petitioner, leading to the admission of the Petition. The Tribunal appointed an Insolvency Resolution Professional and imposed restrictions on the Corporate Debtor during the moratorium period. The order of moratorium was effective from 24.10.2019 until the completion of the resolution process or liquidation, as applicable. The public announcement of the resolution process was mandated, and the Interim Resolution Professional was appointed to oversee the proceedings.In conclusion, the Tribunal admitted the Petition, directed the Registry to communicate the order to the parties and the appointed professional, and imposed restrictions on the Corporate Debtor during the resolution process.
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