TaxTMI 
TaxTMI 
2017 (7) TMI 925
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...., the practising company secretary, the authorised representative of the applicant, that the affidavit in support of form No.6 is not in the prescribed format and verification is also not given with respect to certain paragraphs on the basis of knowledge and others on the basis of belief. It was also pointed out that the communication by the proposed Insolvency Professional in form No.2 is also incomplete and that the list of workers / employees mentioned at Page 283 does not contain their complete address. It was directed that the corporate applicant shall file the revised form No.6 containing these details and the documents along with the affidavit of Mr. S.K. Guglani, Director. The compliance has been made. 2. It is represented by Mr. Sarin that the applicant company was incorporated on 21.7.1992 with the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh at Jalandhar. Copy of certificate of incorporation with the Memorandum and Articles of Association is also attached. It is stated that the applicant has been allotted GIN No. U74300CH1992PTC012491. The authorised share capital of applicant company is Rs. 6,00,00,000/- i.e, 60,00,000 equity shares of Rs. 10/- eac....
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....igarh 160017 Debt raised as per sanction letter dt.31.3.2015. CC Limits: Rs. 1.02 crs. WCTL: Rs. 6.05 crs. FITL: Rs. 1.42 crs. Total: Rs. 8.67 crs. Amount o/s as per books: Rs. 8.98 crs. Rs.8.15 crs. 4. Siemens Financial Services Ltd. 130, Pandurang Budhkar Marg, Worli, Mumbai-400018. Debt raised as per sanction letter dt.21.5.2015. T/L: Rs. 6.25 crs. Total: Rs. 6.26 crs. Amount o/s as per books: Rs. 6.32 crs. Rs.6.40 crs. TOTAL DEBT RAISED (FINANCIAL CREDITORS) Rs. 206.64 crs. Rs.200.37 crs. Amount as per books (Financial Creditors) Rs.206.45 crs. OPERATIONAL CREDITORS Govt. Departments raised: Rs. 0.85 crs. Total debt (dues) raised Rs. 0.55 Crs. Amount as per books : Rs. 0.55 crs. Rs.14.53 crs. Raw material suppliers Rs.0.12 crs. Total debt (dues) raised: Rs. 9.25 crs. Amount as per books: Rs. 0.22 crs. Nil Workers Employees Total debt (dues) raised: Rs. 0.22 crs. Amount as per books: Rs. 0.22 crs. Nil Service providers. Total debt (dues) rais....
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....to the defaults committed in payment of dues of Punjab National Bank, a notice dated 31.5.2016 was issued under Section 13(2) of SARFAESI, 2002 and notice dated 29.9.2016 issued under section 13(4) of Securitisation and Reconstruction of Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) was issued for an amount of Rs. 118.70 crores [Annexure 1(C)]. Further, applicant further represents that duo to the defaults committed in payment of dues of Canara Bank, a notice dated 06.6.2015 issued under Section 13(2) of SARFAESI, 2002 and notice dated 29.9.2010 issued under section 13(4) of Securitisation and Reconstruction of Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) was issued for an amount of Rs. 67.12 crores [Annexura 1(G) and Annexure1 (C)]. The applicant further represents that due to the defaults committed In payment of dues of ICICI Bank, a notice dated 09.3.2016 was issued under Section 13(2) and notice dated 29.9.2016 issued under section 13(4) of Securitisation and Reconstruction of Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) for an amount of Rs. 8.15 crores [Annexure l (K) and Annexure l ....
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....nil Guglani, the Director of the applicant-company, for consideration of the Tribunal. 11. It is also represented that mortgage of the current assets of the company both present and future and of the fixed assets was created on 07.03.2011, for which, the Punjab National Bank issued the sanction letter, copy of which is Annexure 1 (B). The value of the stock, and the debtors is also stated as Rs. 7.99 crores and Rs. 76.07 crores respectively, totalling to Rs. 84.06 crores as per the balance sheet ending on 26.03.2017. 11.2 The corporate applicant has filed a copies of certificates of charge issued by ROC for the consortium banks at Annexure I (Q) (Page 167 to 184) These certificates of various dates show creation of charge between the corporate applicant and each of the financial creditors. 12. It is stated that the 'corporate debtor' created equitable mortgage of entire land and building, plant and machinery (existing and proposed) and other fixed assets. Equitable mortgage of land and building of corporate applicant situated at Village Kishanpura, Baddi - Nalagarh Road, Baddi (HP) except machinery specifically charged in favour of Siemens Financial Services Limite....
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....ented that the following personal guarantees have also been issued: a. Guarantee by Mr. Sunil Guglani as per sanction letter dt.28.3.2015 by lead bank i.e. PNB (total net worth is Rs. 63.19 crores and immovable property Rs. 12.11 crores as on 27.10.2014). b. Guarantee by Mrs. Suman Guglani as per sanction letter dt.28.3.2015 by lead bank i.e. PNB (total net worth is Rs. 27.25 crores and immovable property Rs. 16.31 crores as on 27.10.2014). c. Guarantee by Mr. Suhail Guglani as per sanction letter dt.28.3.2015 by lead bank i.e. PNB (total net worth Is Rs. 16.36 crores and immovable property Rs. 12.11 crores as on 27.10.2014). d. Guarantee by M/s York Polymers as per sanction letter dt.28.3.2015 by lead bank i.e. PNB (total net worth is Rs. 4.47 crores and immovable property Rs. 0.23 crores as on 10.12.2013). e. Guarantee by M/s Shivek Labs Ltd. as per sanction letter dt.23.3.2015 by lead bank i.e. PNB. It is stated in the application in form No.6 that these guarantees were created by PNB on 27.11.2006, Canara Bank on 13.3.2012 and by ICICI Bank on 12.3.2013. 13. The instant application filed in form 6 in terms of Section 10 of '....
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....n 10 of the 'Code' confers a discretion on this Tribunal to either admit or reject the application and in case of rejection to give an opportunity to the applicant before such rejection to rectify the defects within seven days from the date of receipt of such notice from the Adjudicating Authority. The term "Corporate Debtor" has been defined under Section 3 (8) of Part- I of the 'Code' to mean a Corporate Person, who owes a debt to any person and 'default' is defined under Section 3 (12) of Part-I of the Code to mean "non-payment of debt when whole or any part or instalment of the amount of debt has become due and payable and is not repaid by the debtor or the corporate debtor, as the case may be". 14. As provided in Rule 7(1) of the Rules, the Corporate Applicant has to make an application under Section 10 of the 'Code' in Form 6 accompanied with documents and records required therein and as specified in IBBI (insolvency Resolution Process for Corporate Persons) Regulations, 2016, Since we have already dealt in detail in the opening paragraphs supra of this order relating to information furnished, we are not repeating the same for sake of bre....
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.... Rs.25,03,27,401/- As on 31.03.2016 - Rs.66,90,47,203/- As on 31.03.2015 - Rs.1,95,45,63,347/- 18. The figures extracted above indicate the losses with continued fall in revenue, therefore, it seems that the applicant has fallen into debt trap and is competent to set in motion the insolvency resolution process as contemplated under the 'Code'. On the basis of the aforesaid statements of the affairs of the company, the outstanding amount as per the books of the company towards financial creditors is Rs. 206.45 crores and the amount in default towards financial creditors is Rs. 206.64 crores. It is represented that the total amount of operational creditors (Raw Material Suppliers) is Rs. 9.25 crores and the amount in default is Rs. 9.25 crores. The total amount of operational creditors (Government dues) is Rs. 0.55 crores and the amount in default is Rs. 14.53 crores. The total amount of operational creditors (Workers/Employees) is Rs. 0.22 crores and the amount in default is nil. The total amount of operational creditors (Service providers) is Rs. 0.32 crores and the amount in default is Rs. 0.04 crores. 19. In view of the aforesaid discussion, the ....
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....d of ethics and moral. (iv) The Interim Resolution Professional shall endeavour to constitute the Committee of Creditors at the earliest but not later than 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. 20. We 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, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) Any action to foreclose, recover or enforce any security interest created by th....