TaxTMI 
TaxTMI 
TaxTMI 
2017 (11) TMI 412
X X X X Extracts X X X X
X X X X Extracts X X X X
....Towers, Rama Talkies Road, Visakhapatnam - 530003. 4. The Respondent Company proposed to procure 1292 MT of MS Billets from M/s. Hari Hara Traders, Visakhapatnam and thus made a request to the Petitioner for approval and clearance for the purchase of Inland Letter of Credit for Rs. 4,99,97,493/- (Rupees Four Crores Ninety Nine Lakhs Ninety Seven Thousand Four Hundred and Ninety Three only). Accordingly the following agreements were executed by the Petitioner and Respondent. 5. Accordingly an Agreement No.PEC/ILC/SRAL-HHT-10/2013-2014, dated 24-02-2014 between the Petitioner/Financial Creditor and the Respondent/Corporate Debtor by inter alia agreeing that material should be delivered and stored in open space earmarked for PEC duly fenced at SRAL's Yard, Paravada, Visakhapatnam subject to several terms & conditions are mentioned therein. 6. Accordingly, there is a Deed of Pledge vide Agreement No. PEC/ILC/SRAL-HHT-10/2013-2014 was executed between the Respondent and Petitioner on 03-03-2014 by pledge material purchased from supplier delivered at pledgee's warehouse/pledger's open yard with compound wail/fencing at the factory premises of SRAL subject to several terms mentioned th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....06-2017, 14-08-2017, 21-08-2017 & 29-08-2017 and adjourned from time to time on the requests of Learned Counsel for Respondent on the ground that issue is likely to be settled/resolved with the Petitioner. However, the Learned Counsel for Petitioner opposed the adjournments of the case. 15. Consequently, the Director of Sree Ramakrishna Alloys Limited i.e. Respondent filed Three Affidavits dated 02-06-2017, 30-06-2017 and 16-08-2017. 16. The Respondent vide submission dated 03-04-2017, stated that Sree Ramakrishna Alloys Limited was incorporated on 01-05-1996 and was into business of manufacturing structural steel & MS Angels etc. it was enjoying credit facility with Lakhsmi Vilas Bank, Gajuvaka, Visakhapatnam to the tune of Rs. 50 Crores under sole banking, by extending their difficulties in the steel sector industries, expressed their willingness to clear dues to the Petitioner at one time, as they are in talks with Lakshmi Vilas Bank for additional funds. Therefore, they requested about 4 to 6 weeks time. 17. In the 1st Affidavit dated 02-06-2017, the Respondent asked for further period of 2 to 3 weeks time for the same purpose. Respondent submitted that their proposal for ad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the contentions raised in their affidavits are just for the sake of getting time and they have not paid any single pie till today. 23. In view of the above submissions, directions of the Hon'ble NCLAT as Stated supra, case has to be decided quickly without granting any further time. 24. As stated supra, there is no dispute with regard to the debt and default and only the defence is that since more number of employees (142 employees) are working in the company, bank is considering their loan proposal favourably & expected sanction any time, hence, they were requesting time. However, considering the time already consumed by the Respondent and not even a single rupee is paid to the Petitioner so far, Adjudicating Authority is of the considered view that it is not possible to extend any further time. 25. The Petitioner has suggested to appoint Mr. Vikarm Kumar as IRP. The IRP proposed also filed an affidavit by giving declaration as required under the law. 26. Shri Rajesh Bohra, learned Counsel for Respondent after requesting time on several dates as mentioned above, has raised the plea that the Petitioner will not come under the definition of "Financial Creditor" but as "Operati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e corporate debtor or notice of the dispute under sub-section (2) of section 8, the operational creditor may file an application before the Adjudicating Authority for initiating a corporate insolvency resolution process. (4) an operational creditor initiating a corporate insolvency resolution process under this section, may propose a resolution professional to act as an interim resolution professional. (8) Section 13 - Declaration of moratorium and public announcement. (1) the Adjudicating Authority after admission of the application under section 7 or section 9 or section 10, shall, by an order- a. declare a moratorium for the purposes referred to in section 14; b. cause a public announcement of the initiation of corporate insolvency resolution process and call for the submission of claims under section 15; and c. appoint an interim resolution professional in the manner as laid down in section 16. (2) the public announcement referred to in clause (b) of sub-section (1) shall be made immediately after the appointment of the Interim Resolution Professional. (9) As Per Section 5(i) communicate such decision to operational creditor & the corporate debtor if, a. under....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot even a single rupee is paid so far even though petition was submitted under IBC on 22-03-2017. Moreover, the petitioner being a Government of India Enterprise taken steps for recovery of its dues from 2015 and considerable time had already lapsed therefore in the interest of time/both the parties, we have considered the present petition under section 9 of IBC, the petition filed is maintainable and petition is also complete in all respects as per provisions of section 9 of IBC and thus it is a fit case for admission. Therefore we have no hesitation to consider this petition under section 9 of IBC. 30. Heard, Counsels for both the sides. Considering the facts and circumstances of the matter as discussed supra and we are also satisfied that there is no disciplinary proceedings pending against the proposed IRP. In the result, the Company Petition bearing CP No. 39/7/HDB/2017 is admitted by exercising the powers conferred under section 9 of IBC, 2016. 31. By invoking the powers under Sections 10, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 and 25 and other applicable provisions of the Insolvency and Bankruptcy Code, 2016, the Adjudicating Authority passes the following order :- (....