TaxTMI 
TaxTMI 
2017 (9) TMI 494
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....as the Code) for initiating the insolvency resolution process in respect of M/s Concord Hospitality Pvt. Ltd. the Respondent-Corporate Debtor. The application has been filed in Form No.1 prescribed under rule 4(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity, the 'Rules'). This petition has been filed through Ms. Richa Malhotra, Officer of the 'Financial Creditor' on the basis of General Power of Attorney dated 17.05.2016 (Annexure A-1) issued in her favour by the bank. The Circle Head of the bank also authorised Ms. Richa Malhotra for initiating the insolvency resolution process under the 'Code' against the 'Corporate Debtor', vide letter dated 15.05.2017 (Annexure A-2). 3. 'Corporate-Debtor' was incorporated on 29.09.2005 having authorised share capital of Rs. 7,00,00,000/- (Rupees seven crores only) and paid-up capital of Rs. 5,85,42,010/-(Rupees five crores eighty-five lacs forty-two thousand and ten only). It has been allotted CIN No.U55100PB2005PTC29009. The registered office of the 'Corporate-Debtor' is at Amritsar and thus the matter falls within the territorial jurisdict....
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....Building situated at Ajnala Road Opposite Amritsar international Airport, Amritsar. (b) Extension of charge over the SCO No.166 Sectors 38 C & D Chandigarh. (c) Extension of charge over the SCO No.205 Sectors 36 D, Chandigarh. (d) Extension of charge over the SCO No.167 Sectors 38 C & D, Chandigarh. (e) Extension of charge over the COMMERCIAL LAND AND BUILDING AND LAND AT G.T. Road, Amritsar (f) Extension of charge over the residential property bearing No.21, Block L, Bich Court, Nirwana Country, South City 2, Phase II Gurgaon Haryana. (g) Extension of charge over the residential property bearing No.30r Road No. 64, Village Madipur West Punjabi Bagh New Delhi. (h) Exclusive charge of Property bearing Pt Nos. 75,76,77, Khasra Nos.22/120 Min situated at Rakba Village Sichandar, Tehsil & distt. Amritsar vide Sale Deed 9803 dated 10.10.2006. Entries were made in the relevant register of the Bank in proof of creation of equitable mortgage by deposit of title deeds. These entries are at Annexure A-34 (colly) from pages 622 to 625 of the Paper Book. The Certificate of Registration of Charge entered in the record of Registra....
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....respondent No.1 but the compliance has not been made. 12. On merits it was stated that the petitioner has concealed important and relevant facts from the Tribunal inasmuch as the 'Corporate-Debtor' was sanctioned various loan facilities by the consortium comprising of three banks i.e. State Bank of India, IDBI Bank and Punjab National Bank (petitioner). The lead bank is State Bank of India but no approval to file this petition was obtained from either the State Bank of India or IDBI Bank. However, the factum of grant of loan facilities and that the 'Corporate-Debtor' committed default in making repayment of debt has not been disputed. It was rather stated that on 26.07.2017 the 'Corporate-Debtor' submitted an application to the petitioner bank for review-cum-restructuring proposal which was received by the Chief Manager of the bank. The 'Corporate-Debtor' also proposed to deposit an amount of Rs. 125 lacs. After some discussion it was verbally conveyed by the officials of Bank that on such deposit by the 'Corporate-Debtor' the bank would restructure the loan facilities by withdrawing the present application. It was further stated that the ....
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...., therefore, the application may be rejected. This contention of the learned counsel is based on proviso to Section 7(5) of the 'Code' which reads as under:- "Where the Adjudicating Authority is satisfied that- (a) a default has occurred and the application under sub-section (2) is complete, and there is no disciplinary proceedings pending against the proposed resolution professional it may, by order, admit such application; or (b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary proceedings is pending against the proposed resolution professional, it may, by order, reject such application: Provided that the Adjudicating Authority shall, before rejecting the application under clause (b) of sub-section (5), give a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice from the Adjudicating Authority." 17. Learned counsel for the 'Financial-Creditor' however, submitted that though all the particulars of application in Form No.1 were complete, yet as an abundant caution the petitioner's counsel filed application for....
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....is application under Section 7 of the Code, We also declare moratorium in terms of Section 14 of the Code. A necessary consequence of the moratorium flows from the provisions of Section 14 (1)(a), (b), (c) & (d) and thus the following prohibitions are imposed: "(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 the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor." 22. It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Cent....