TaxTMI 
TaxTMI 
2017 (6) TMI 410
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....sing Company Secretary the Authorised Representative of the 'Applicant/Corporate Debtor' that the 'Applicant Company' was incorporated on 17.04.2003 with the Registrar of Companies, Punjab & Chandigarh. This is part of Annexure VII-B containing the Memorandum & Articles of Association of the Applicant/Corporate Debtor'. The 'Applicant/Corporate Debtor1 has been allotted CIN No. U15419PB2003PTC025934. 3. The authorised share capital of the 'Applicant/Corporate Debtor' is Rs. 50,00,000 and its paid-up capital is Rs. 13,42,00,000/-. There are presently three Directors of the 'Applicant/Corporate Debtor' with distinct DIN numbers as per list at page 501 and six shareholders as per Annexure VI (F) of the Paper Book with major shareholding belonging to :- (i) Mr. Sunil Guglani 54.09% (ii) Mr. Suhail Guglani 21.97% (iii) Mrs. Suman Guglani 16.39% It is also represented that the 'Applicant/Corporate Debtor' passed resolution dated 30.03.2017 Annexure 'VII-A' authorising Mr. Sunil Guglani, Director of the Company to file an application under Section 10 of Insolvency and Bankruptcy Code,2016 and Rules ma....
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....9;; 76 Operational Creditors' (raw material) as on 28.03,2017; and 14 'Operational Creditors' (service providers) as on 28.03.2017. The list of 'Operational Creditors' is attached as Annexure-ll in the original petition as well as the additional documents. It is also represented that in respect of the Government Departments the amount of debt raised is 00.12 crores and amount in default is 12.93 crores (contingent liability DGFT). The details of default of the Government Department is at Annexure II(A). The amount of default in respect of raw material supply is stated to be Rs. 00.16 crores; in respect of workers it is Rs. 00.06 crores (as per books it is Rs. 00.19 crores); in respect of service providers the default is Nil though as per books it is stated to Rs. 00.22 crores. It is represented that the total amount of default Financial and Operational creditors is Rs. 79.61 crores and as per books the same is Rs. 82.80 crores. The default, however, is mentioned as Rs. 95.62 crores by including contingent liability DGFT. 6. Mr. G.S.Sarin, the Authorised Representative of the 'Applicant/Corporate Debtor' further represents that due to default in making....
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....the creditor dated 31 01.2015. Copy of the valuer's report is Annexure I (R), (ii) Sunil Guglani, Suman Guglani, Suhail Guglani and Sahil Arora have also furnished personal guarantees in respect of the immovable properties on 28.03.2015. Net worth of their immovable property has also been detailed in the application. 8. The 'Applicant/Corporate Debtor' proposed the name of Mr. Prakash Dev Sharma as the Insolvency Resolution Professional but when the matter was listed on 25.04.2017, it was pointed out that Mr. Prakash Dev Sharma has already been appointed as IRP in the case of another company whose promoters are the same as that of the 'Applicant Company' and therefore, time was requested to propose the name of another IRP. The 'Applicant/Corporate Debtor' has filed fresh communication in Form No.2 of the proposed IRP with the documents filed on 27.04.2017 which is at Annexure-A. The 'Applicant' has now proposed the name of Mr. Krishan Vrind Jain as the IRP who is registered with IBBI under Registration No.IBBI/IPA-001/IP-00619/2016-2017/1396. Mr. Jain has agreed to accept the appointment as IRP if an order admitting the instant petition is ....
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.... (b) reject the application, if it is incomplete. Provided that Adjudicating Authority shall, before rejecting an application give a notice to the applicant to rectify the defects in his application within seven days from the date of receipt of such notice from the Adjudicating Authority. (5) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (4) of this section. 11. The above provision of 'the Code' discloses that the following procedures are required to be completed by a 'Corporate Debtor' for initiating the process of insolvency: (i) Existence of a 'Corporate Debtor' (ii) Such a 'Corporate Debtor' must have committed a default. (iii) On the satisfaction of (i) and (ii) above, a 'Corporate Applicant' may file an application for initiating Corporate Insolvency Resolution Process. (iv) Such an application as contemplated in (iii) above shall be filed in such forms, containing such particulars and in such manner and accompanied with such fee as may be prescribed. (v) Along with the application as in (iv) above, information relating to books of ac....
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.... been filed along with an application to take the same on record. The request is allowed. 15. It is represented by the learned counsel for the 'Applicant' that as per these financial statements, following is the status of the 'Applicant Company' under different heads:- Accumulated profit/loss of the 'corporate debtor' As on 28.03.2017 - Rs.28,88,88,860/- As on 31.03.2016 - Rs. 19,13,33,667/- As on 31.03.2015 - Rs. 4,06,06,090/- Lone Term Borrowings and other liabilities discloses the following for the above years: As on 28,03.2017 - Rs. 74,16,88,008/- As on 31.03,2016 - Rs.69,80,23,748/- As on 31.03.2015 - Rs. 51,74,67,126/- Current Liabilities As on 28.03.2017 - Rs. 11,45,05,198/- As on 31.03.2016 - Rs. 11,40,71,600/- As on 31.03.2015 - Rs. 22,23,25,560/- Revenue from Operations and other income: As on 28.03.2017 - Rs. 5,04,49,019/- As on 31,03.2016 - Rs. 29,66,47,809/- As on 31.03.2015 - Rs. 1,10,16,60,676/- 16. The figures extracted above would indicate the losses and fall in revenue considerably. The 'Applicant Compa....
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....9;, all the rules framed thereunder by the Board or the Central Government and in accordance with the Code of Conduct governing his profession and as an Insolvency Professional with high standard of ethics and moral. (iv) The Interim Resolution Professional shall endeavour to constitute the Committee of Creditors at the earliest but not laterthan three weeks from the date of this Order. (v) It is hereby directed that the 'Corporate Debtor', its properties, personnel and persons associated with the management shall extend all cooperation to the Interim Resolution Professional in managing the affairs of the 'Corporate Debtor' as a going concern and extend all cooperation in accessing books and records as well as assets of the 'Corporate Debtor'. 18. I further declare a moratorium in relation to the following matters as contemplated under Section 14 of the 'Code' as under:- (a) The institution of suits or continuation of pending suits or proceedings against the 'Corporate Debtor' including execution of any judgment, decree or order in any Court of Law, Tribunal, Arbitration panel or other Authority; (b) Transferring, encumbering, ....