TaxTMI 
TaxTMI 
2017 (12) TMI 973
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....iation of Corporate Insolvency Resolution Process in respect of the applicant company itself. 2. The Applicant, 'P.K. Sales Company Private Limited' is a company incorporated under the Companies Act, 1956 bearing CIN No. U74140DL2011PTC219681. The Applicant Company was incorporated on 23/05/2011 having its registered office at 232 SF Manglam Paradise, Plot 8 Manglam Place, Sector 3, Rohini-110085. Since the registered office of the respondent company is in Delhi, this Tribunal having territorial jurisdiction over the place is the Adjudicating Authority in relation to the prayer for initiation of Corporate Insolvency Resolution Process in respect of applicant corporate debtor under sub-section (1) of Section 60 of the Code. 3. The present ....
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....present case the director of the applicant company has filed the instant application under Section 10 of the Code on behalf of the applicant company duly authorised to do so. 6. Besides, in compliance of Section 10(3)(a) of the Code read with Annex-V of Form 6 of the Rules, the applicant company has filed copies of audited financial statements of the Applicant Company for the last two financial years i.e. 2015-16 and 2016-17. In addition, copy of provisional financial statement of the Applicant Company for the current financial year made up to a date not earlier than fourteen days from the date of the application, i.e. from 01.04.2017 to 10.10.2017 has also been filed. 7. In compliance of Section 10 (3) (b) of the Code the applicant has p....
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....t of a sum of Rs. 40,20,27,942/- and a copy of notice dated 22.05.2017 issued by Aditya Birla Finance Limited seeking payment of a sum of Rs. 21,96,872/- and also a copy of notice dated 27.12.2017 issued by Religare Finvest Limited seeking payment of Rs. 32,73,050/- have been placed on record. It is the contention of the applicant that it failed to make payment to the corporate creditors in view of huge losses and their account was converted to NPA on 11.01.2017. 10. There is thus no dispute that the applicant company has admittedly committed default and therefore is entitled to file the present application in terms of sub-section (1) of Section 10 of the Code. 11. Applicant by way of affidavit dated 23.10.2017 has affirmed that there is ....
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....r that during pendency of proceedings under SARFAESI Act, there is no bar for initiation of insolvency proceedings under the Code. 16. That apart in view of the overriding effect given by the provisions of Section 238 of the Code, the initiation of proceeding under SARFAESI Act by the financial creditor is no bar for initiation of insolvency proceedings under the Code. Hence, the objection raised by the financial creditor cannot sustain. 17. It is pertinent to state here that the provisions of Insolvency & Bankruptcy Code, 2016 have been notified by the Central Government on 01.12.2016 for the objects as can be gleaned from the Statement of Objects and Reasons as given below: "An act to consolidate and amend the laws relating to reorgan....
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....as the details of financial creditor and operational creditors to whom the Corporate Debtor owes money including their address for correspondence. It is also pertinent to note that in relation to the debts owed by it the Corporate Debtor is required to furnish the total amount of debt and the amount in default and also in particular as to when the financial or operational debt was incurred including the details of the security held, if any, by the creditors and its estimated value. The Corporate Debtor, in addition, is also required to furnish the documents evidencing the existence of financial/operational debt and the amount in default. 21. From the detailed examination of the application and the submission made by the learned Counsel, we....
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....der sub-section 5 of section 10 of the Code. 23. A moratorium in terms of section 14 of the Code is being issued prohibiting the following: * 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; * transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; * any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Se....