TaxTMI 
TaxTMI 
2017 (7) TMI 41
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....ctioning as NBFC, only a sum of Rs. 2 crore was disbursed in favour of the Respondent i.e. the Corporate Debtor on 20th June, 2011 and 10th August, 2011 i.e. Rs. one Crore on each date. It is also clarified that the debt amount was repaid however the interest payment was defaulted. As per the Petition the amount in 'Default' is Rs. 93,29,633/- which was treated as NPA as on 31st March 2013 being a defaulter of payment of monthly interest. The Petitioner has stated that due to non-payment of monthly interest, pending since long, admitted factual position is that the Corporate Debtor had committed "Default", as prescribed under The Code. 2. One more fact has been brought to the notice that one more creditor viz. J.M. Financial Asse....
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....urther it is brought to the notice that one more order was passed by DRT. Mumbai on 21st March, 2017 in IA No. 243 of 2017 wherein directed as under:- "The counsel appearing for the Applicants addressed his arguments at length on the point of fixing of tow reserve price for the secured asset and also for confirming the bid in favour of the alleged successful bidder for a low amount of Rs. 19.26 crores. The learned counsel appearing for the Respondent Bank seriously disputed the contention of the Applicants and after conclusion of arguments on both the sides, Mr. Rishabh Shah, the learned counsel appearing for the Applicants on instruction from his clients who was present in the open court finally submitted that the Applicants are r....
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....as Rs. 2,00,00,000/- (Rupees Two Crore only). Interest on the said debt was regularly serviced by Quantum Ltd. for the period 26.02.2011 to 31.03.2012. However, the payment of interest from 01.04.2012 to 31.12.2012 was highly irregular and the account turned into NPA as on 31.03.2013. The financial Creditor regularly pursued with the Corporate Debtor for recovery of its principal and interest. The Corporate Debtor made the repayments thereafter intermittently by the account remained irregular. Meanwhile, the credit facilities enjoyed by the Corporate Debtor with Corporation Bank also turned into NPA and the said Bank sold this liability to J.M. Financial Asset Reconstruction Company Pvt. Ltd., ARC. Hence this application is being filed befo....
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....tion and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002). A statement at Bar has also been made that the Petitioner i.e. Indus Finance Ltd. is ready to induct more funds so that the dispute with J.M. Finance of the Corporate Debtor should be resolved and the company may be revived by saving from winding up proceedings. Ld. AR has also pleaded that as per the SARFAESI Act 2002 there was no provision for joining a dispute of recovery by unsecured creditor hence the petitioner was prevented in not joining dispute before DRT. The recovery proceedings initiated by J.M. Financial may adversely affect the right of recovery of the Petitioner. 7. From the side of the Respondent (Corporate Debtor) ld.....
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....t therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (54 of 2002); (d) The recovery of any property by an owner or less or where such property is occupied by or in the possession of the corporate debtor. (2) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period. (3) The provisions of sub-section (I) shall not apply to such transactions as may be notified by the Central Government in c....
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....ovisions of SARFAESI Act. 8.2) Certain conditions precedent for 'Admission' of a petition under I&B Code, prima facie, have been presently completed, like the 'Default' of non-payment is established. Rather the Corporate Debtor being present in the court has not objected for the impugned default in making the payment of the outstanding dues as claimed by the Petitioner. As a result the provisions of Section 7 of The Code have come into operation, which prescribes that a financial creditor may file an application for initiating Corporate Insolvency Resolution Process against a Corporate Debtor when a default has occurred. It is required that a Financial Creditor shall furnish the record of the default. When the Adjudicatin....