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of <h1>Admission of Insolvency Petition for CLC Industries Limited Sparks Corporate Resolution Process</h1> <h3>Edelweiss Asset Reconstruction Company Limited Versus CLC Industries Limited</h3> Edelweiss Asset Reconstruction Company Limited Versus CLC Industries Limited - TMI Issues:1. Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process.2. Default in payment by the Corporate Debtor to the Financial Creditor.3. Discrepancies in the statement of account presented by the Financial Creditor.4. Compliance with the provisions of the Insolvency and Bankruptcy Code, 2016.Analysis:Issue 1: Application under Section 7 of the Insolvency and Bankruptcy Code, 2016The Financial Creditor, Edelweiss Asset Reconstruction Company Limited, filed a petition under Section 7 of the Code seeking initiation of Corporate Insolvency Resolution Process against CLC Industries Limited, the Corporate Debtor. The Financial Creditor proposed the name of Mr. Subhash Kumar Kundra as the Interim Resolution Professional, fulfilling the requirements of Rule 9(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.Issue 2: Default in payment by the Corporate Debtor to the Financial CreditorThe Financial Creditor detailed the financial debt granted to the Corporate Debtor by ICICI Bank Limited, highlighting the default amount as of 15.03.2019 to be Rs. 1,04,39,98,947.78. The Financial Creditor asserted that the Corporate Debtor repeatedly defaulted on repayment schedules, leading to the issuance of various notices to clear the unpaid debt/liability.Issue 3: Discrepancies in the statement of account presented by the Financial CreditorThe Respondent raised objections regarding an alleged settlement document, claiming novation of the contract and disputing the liability. However, the Petitioner provided evidence of restructuring approval and subsequent non-compliance by the Corporate Debtor, leading to the revocation of the restructuring agreement.Issue 4: Compliance with the provisions of the Insolvency and Bankruptcy Code, 2016The Tribunal found that the provisions of Section 7(2) and Section 7(5) of the IBC were duly complied with, referencing a previous judgment for clarification. After thorough examination, the Tribunal admitted the petition, appointed an Interim Resolution Professional, declared a moratorium, and directed the Financial Creditor to deposit funds for the resolution process. Additionally, directions were issued for document submission and information provision by the Ex-Management/Auditors.In conclusion, the Tribunal admitted the petition under Section 7 of the Code, ensuring compliance with legal provisions and initiating the Corporate Insolvency Resolution Process for the Corporate Debtor, CLC Industries Limited.
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