TaxTMI 
TaxTMI 
2017 (10) TMI 757
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.... Authority) Rules, 2016, ("IB Rules" for short) styling itself as 'Financial Creditor' for initiation of Corporate Insolvency Resolution Process in respect of Kalptaru Alloys Private Limited, treating it as 'Corporate Debtor'. 2. Respondent Company is a Private Limited Company incorporated under the Companies Act having its Registered Office in Thaltej Cross Road, Ahmedabad. The Authorised Share Capital of the Respondent Company is 7,50,00,000. The Paid-Up Capital of the Respondent Company is Rs. 3,90,25,000. The Main Object of the Respondent Company is to carry on business of manufacturing of MS Ingots (raw material for steel making). 3. Respondent approached Indian Overseas Bank (IOB) in 2004 for credit facilities for the purpose of....
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....tters, Term Loan Agreement, Guarantee Agreement, Demand Promissory Note etc. 6. Inspite of repeated demands, Respondent Company did not choose to make payments. Respondent Company in respect of Working Capital and Term Loan facilities, executed several Revival Letters dated 17.9.2007, 25.7.2008, 28.4.2009, 29.1.2011 and 19.7.2013 acknowledging its liability. 7. IOB executed Assignment Agreement dated 22.7.2015 in favour of Edelweiss Asset Reconstruction Co. Ltd., (Applicant) where-under IOB assigned the debt due to it from the Respondent Company to the Applicant Company, which is also signed by the Authorised Signatory of the IOB. The Assignor under the Assignment Agreement dated 22.7.2015 assigned the debts of the Respondent Company ....
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....d there is no privity of contract between the Applicant and the Respondent; (c) The proceedings are barred by limitation, since the last demand notice is dated 7.3.2014. It is stated that the provisions of Section 433 of the Companies Act make the provisions of Limitation Act applicable before the National Company Law Tribunal and its mechanism cannot be used to recover time barred debts; (d) IOB already initiated proceedings against the Respondent Company under the provisions of the SARFAESI Act. Respondent is disputing the outstanding amount. The mandatory period of 14 days has already expired. (e) The Respondent has no information about the proposed Interim Resolution Professional. 10. Considering the ....
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....t of application filed by the Financial Creditor under Section 7 of the Code, is required to satisfy - (a) Whether a default has occurred; (b) Whether an application is complete; and (c) Whether any disciplinary proceeding is against the proposed Insolvency Resolution Professional In the above said decision, the Hon'ble Appellate Tribunal further held that once the Adjudicating Authority is satisfied on all the above aspects, it is required to admit the case. 14. Now, I proceed to examine whether a default has occurred. A perusal of the Certificate under the Bankers' Books Evidence Act, which is available at Exhibit 'K' collectively at Pages 218 to 233 of the Application shows that there is a debt due from t....
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....er by itself or jointly are entitled to file an application for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor under Section 7 of the IB Code in Form No. 1. 16.1 Sub-Rule (2) of Rule 4 of the IB Rules says, where the Applicant is an Assignee, the Application shall be accompanied by a copy of the Assignment Deed. In the case on hand, the Applicant is the Assignee of the debt from the Indian Overseas Bank in an Assignment Deed. The copy of the Assignment Agreement dated 22ndJuly, 2015 is filed along with the Application. Therefore, the Assignee of the debt is also entitled to file Application and such Assignee steps into the shoes of the Financial Creditor. Therefore, this Application filed by the Applic....
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....read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 20. This Adjudicating Authority hereby order moratorium under Section 13(l)(a) of the IB Code prohibiting the following as referred to in Section 14 of the Code; (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 acti....