2017 (10) TMI 462

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.... Fabrics Limited being its 'Corporate Debtor'. It is stated in Form 5, being the application prescribed for 'Operational Creditor' to initiate CIRP under the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for brevity hereinafter called as 'AAA' Rules, that a total sum of Rs. 5,16,17,335/- is the amount of debt incurred by the 'Corporate Debtor' towards supply of cotton and that the said amount is also in default on the part of the 'Corporate Debtor'. It is further stated in the said Form that the debt fell due from 15.12.2014 and that notice through its legal Counsel dated 22.12.2014 annexed as Annexure-10 to the application was issued to the 'Corporate Debtor' ....

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....3. The 'Corporate Debtor' has also filed an additional affidavit on 31.7.2017 bringing to the notice of this Tribunal the following facts in relation to the 'Corporate Debtor' namely: (a) That the 'Corporate Debtor' was declared as the sick industrial company duly registered before the BIFR as case No. 375/2001 and that BIFR vide order dated 19.5.2010 had formed an opinion for winding up of the 'Corporate Debtor' and also forwarding the same to the Hon'ble High Court of Delhi. (b) That against the said order of the BIFR dated 19.5.2010, the 'Corporate Debtor' had preferred an appeal to the Appellate Authority namely AAIFR in Appeal No. 195/2010 which was pending before the Appell....

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....s and submissions, the Bench confirmed its prima facie opinion, formed on 02.03,2010, that the company/Pasupati Fabrics Ltd is not likely to make its net worth exceed its accumulated losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof is not likely to become viable on a long term basis and hence it is just, equitable and in public interest that it is wound up under section 20(1) of SICA. Let this opinion be sent to the concerned High Court. The company is directed to safeguard the assets of the company until the Official Liquidator appointed by the High Court takes over the assets. 5. Further, the 'Corporate Debtor' has also enclosed the order of AAIFR dated 4.6.201....