TaxTMI 
TaxTMI 
2017 (10) TMI 911
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....ection 7 of the Insolvency and Bankruptcy Code 2016 r/w Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against M/s. Ashok Magnetics Ltd. (hereinafter referred to as Corporate Debtor). The prayer made in the Application is to admit the Application, initiate the Corporate Insolvency Resolution Process, declare Moratorium and appoint an Interim Resolution Professional (IRP) under the relevant provisions of the I&B Code, 2016. The Corporate Debtor caused appearance through Counsel and filed counter. 2. We have heard the Ld. Counsel for Financial Creditors and Ld. Sr. Counsel for the Corporate Debtor. The relevant factual detail is as follows:- In the Application at page 5 under part IV, Column ....
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....Corporate Debtor to State Bank of India is placed at pages 17 to 25 of the typed set to the Application which tallies with the statement of account placed at pages 563 and 565 of the typed set to the Application. 3. The Central Bank of India/ 1st Applicant has sent notice under Section 13(2) of the SARFAESI Act, 2002 on 17.12.2015 to the Corporate Debtor, the copy of which is placed at page 87 of the typed set to the Application. The demand notice under Section 7 of the I&B Code, 2016 was sent to the Corporate Debtor on 12.06.2017 to which the Corporate Debtor has given their reply on 19.06.2017 stating therein that the loan is collaterally secured by immovable properties, and therefore, the provisions of the I&B Code, 2016 cannot be inv....
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....the Corporate Debtor stands rejected. The second objection that has been raised by the Corporate Debtor is that the service on the Corporate Debtor has not been effected as provided under Rule 4 (3) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, because the notice has been sent at the Administrative Office of the Corporate Debtor instead of Registered Office. In this regard, the Ld. Sr. Counsel in support of his argument has referred to the ruling of Hon'ble NCLAT given in Bhash Software Labs (P.) Ltd. v. Mobme Wireless Solutions Ltd. [Co. Appeal (AT) (Insol.) No. 79 of 2017, dated 29-8-2017]. However, the Counsel for the Financial Creditors submitted that the Corporate Debtor has provided the a....
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....ile to show that there are no discrepancies in the amount claimed by the Financial Creditors and the record reflects the correct figures given in the Application and "Factual Sheets" along with the statement of account. Therefore, this objection also stands rejected. The Ld. Sr. Counsel for the Corporate Debtor has referred to the ruling given by the Hon'ble NCLAT in Starlog Enterprises Ltd. v. ICICI Bank Limited. pertaining to the issue of mis-match of the accounts. But, there is no mis-match of the account in the present matter. Therefore, the ruling referred to by the Corporate Debtor is not applicable to the facts and circumstances involved in the present case. Ld. Sr. Counsel for the Corporate Debtor also raised objection tha....
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....narao Nagarajan, as IRP as proposed by the Financial Creditors. There is no disciplinary proceedings pending against the IRP as evidenced from Form-2 and his name is reflected in IBBI website. The IRP is directed to take charge of the Respondent Corporate Debtor's management immediately. He is also directed to cause public announcement as prescribed under Section 15 of the I&B Code, 2016 within three days from the date the copy of this order is received, and call for submissions of claim in the manner as prescribed. 10. We declare the moratorium which shall have effect from the date of this Order till the completion of corporate insolvency resolution process, for the purposes referred to in Section 14 of the I&B Code, 2016. We order ....