2017 (10) TMI 297

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...."IB Rules" for short) against the respondent-company treating it as 'Corporate Debtor' for triggering Corporation Insolvency Resolution Process. 2. The Commercial Finance Division of Reliance Capital Limited was demerged into Reliance Commercial Finance Ltd/Applicant Company vide order dated 9.12.2016 passed by the Hon'ble High Court of Judicature at Bombay in a Scheme of Demerger. 3. Respondent/Prime Cars Private Limited is doing business in buying and selling of motorcycles and its parts and accessories. It is a Company registered under the Companies Act, 1956. The Authorised Share Capital of the Respondent Company is Rs. 4,50,00,000/- and the Paid-Up Share Capital is Rs. 4,06,00,520/-. The Registered Office of the Respo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Inspite of repeated demands, Respondent did not choose to repay the outstanding amounts. 7. Reliance Capital Limited got issued a Legal Notice dated 31.1.2017 on the Respondent calling upon it to repay the facility amount aggregating to Rs. 1,02,48,606/- to the Applicant within three days. The said Notice has been duly served on the Respondent but Respondent did not choose to give any reply. The conduct of the Respondent shows its inability to repay the outstanding amount due to the Applicant Company. Reliance Capital Limited, and thereafter Applicant has been regularly maintaining the account of the Respondent. As per the said Statement of Account, an amount of Rs. 97,02,848/- is due from the Respondent as on 31.5.2017. The Applicant f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n interest which debt was assigned to the Applicant Company by virtue of a demerger order in a Demerger Scheme. Therefore, the Applicant is a Financial Creditor and the amount due to the Applicant is a financial debt. The material on record clearly establish that the Respondent Company committed default in repayment of financial debt. The Applicant proposed the name of Shri Subodhkumar Bajranglal Kedia as Interim Resolution Professional' and also filed his Written Communication. 10. In view of the above discussions, the Application deserves to be admitted and it is accordingly admitted under sub-section 5(a) of Section 7 of the Code. 11. This Adjudicating Authority hereby appoint, Shri Subodhkumar Bajranglal Kedia, C/o. Kedia & Ke....