AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 1243
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....before the Adjudicating Authority. The Petitioner is the Whole-time Director of the Company. He filed this Application to trigger Corporate Insolvency Resolution Process under Section 10 of the Code in respect of the Company/Corporate Debtor. The Registered Office of the Corporate Debtor is situated in Jasdan in Rajkot, Gujarat State. The Paid-up Share Capital of the Corporate Debtor is Rs. 13,15,46,500 consisting of 81,54,650 equity shares of Rs. 10 each and 50,00,000 preference shares of Rs. 10 each fully paid up. 3. Petitioner in Part III of Form-6 disclosed that Respondents No. 1 to 5 are Financial Creditors apart from 131 Operational Creditors. According to the Petitioner, the Corporate Debtor has committed default to the extent of Rs. 54,34,25,440.85 ps. in respect of Financial Creditors as per following details; 1. Kotak Mahindra Bank Ltd Cash Credit Loan Rs. 43,73,30,183.00 2. Kotak Mahindra Bank Ltd Export packing Credit Rs. 6,68,46,000.00 3. Kotak Mahindra Bank Ltd Business Loan Rs. 5,62,068.14 4. SIDBI Loan Rs. 3,04,79,967.00 5. SIDBI Loan (New) Rs. 23,48,672.00 6. HDB Financial Services Ltd. Rs. 11,58,154.69 7. TATA Capital Financial Se....
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....Pump, Girmajipet, Warangal 318626.00 19 Envitech Consultancy Services Rajkot A-71, Oscar Tower, B/h. Parijat Party, Plot, 150 Feet Ring Road, Rajkot 65000.00 20 GBP Cotton Company Indore Flat No. 103, Samyak Park, 31, Meera Path, Near Nehru Park, C.T.O, Indore (M.P.). 35000.00 21 Glossy Cotex Wakaner S.F. No: 90/2, National Highway, Nr. Lalpar Village, Kerala, Tal: Wankaner, Dist: Rajkot 2946974.00 22 Gokul Cotton Industries Jasdan Ahmedabad Highway, Jasdan 108623.00 23 Gokul Cotton Tradras Warangal 11-23-2344/4, LB. Nagar, Main Road, Warangal 469749.00 24 Gopal Cotton Industries Dhasa Station Road, Dhasa Jn., Ta. Gadhada Dist. Bhavnagar 771643.00 25 Hardik Tin Supply Vasad Station Road, Opp. Railway Station, Vasad. 201647.00 26 HIMANSHU R PATEL (HUF) Ahmedabad 8, R.K. Industrial Estate, Nagarvel Hanuman Road, Nr. Keval Kanta, Rakhiyal, Ahmedabad-388023 119899.00 27 Jasani & Company Rajkot 216, V.V. Comm. Comlex, 2nd Floor, Dhebar Road, RAJKOT-360002 22500.00 28 Jay Jalaram Cottex Hadamtala National Highway 27, Near Bilyala, At. Bhojpara, Gondal 2765519.00 29 Jayeshkumar & Co. Vasad Near Over Bridge, Vasad 331958.00 30 JD Co....
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....42063.00 52. Mayur Tin Factory Chhatral F-2, 1706, G.I.D.C, Chhatral, Ta :- Kalol, Dist :- Gandhinagar (N.G) 523293.00 53. MJP Associates Rajkot 707, Star Plaza, Phulchand Chowk, Rajkot 12135.00 54. Murlidhar Oil Mill Dhasa Station Road, Dhasa Juction, Dhasa 691775.00 55. Napson Lubricants Pvt. Ltd. Rajkot 309, Rajratan Complex, Tagore Road, Rajkot 22090.00 56. Narendra Logistics Pvt. Ltd. Gandhidham Unit Nos. 1 & 2, Vaswani Chamber, Plot No. 16, Sector No. 8, GANDHIDHAM (KUTCH) 638246.80 57. Narendragiri Hemantgiri Chotila Chotila 446780.00 58. Natvar Cotex Pvt. Ltd. Morbi Vankada Servey No. 279/1, at: Vankada, Morbi 1881562.00 59. Niranjangiri Narendragiri Dudheli Dudheli 173840.00 60. Omshanthi Trading Co. Warangal C/o. Sri Srinivasa Oil Industries, Sy No.:- 521/A, P.I.E., Gorrekunta, Warangal 495546.00 61. P.G.V.C.L Jasdan 2549896.17 62. P.K. Transmission Products Pvt. Ltd. Ahmedabad Ekta Complex, Nr. United Bank, Relief Road, Ahmedabad 161011.00 63. P.V. Chauhan & Co. Rajkot 310 Amidhara Complex, 37 Karanpara Canal Road, Rajkot 25000.00 64. PAN AGRI EXPORT Biliyala Fac: B/h, Shemla Bus Stop, 8-B, National H....
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.... Virnagar Survey No.: 399P3, Rajkot-Bhavnagar Highway, At-Virnagar, Ta-Jasdan, Dist. - Rajkot 524903.00 89. Ravji Shamji Asher Coimbatore Royal Castle, 223-E, East Sambandam Road, R.S. Puram (Post), Coimbatore 44784.00 90. Ronak Traders Vasad Station Road, Opp. Railway Station, Vasad 115736.00 91. S.R. Commodlty Rajkot Star Chamber 813, Harlhar Chowk, Rajkot 45449.00 92. S. UMA DEVI ARRUPPUKOTTAI 1286, Bye-Pass Road, Kanjanaickenpatti, ARRUPPUKOTTAI 37000.00 93. S.V. Industries Rajkot Gokuldham Main Road, 18, Sagar Estate, B/h. S.T. Work Shop, Rajkot 51975.00 94. Sahajanand Cotton Industries Botad Hadadad- Kaniyad Road, Nr. 66 K.V. Sub Station, At.: Hadadad Tal: Botad-364710 548647.00 95. Samik Metal Industries Shapar (Veraval) B/h. Ganga Forging, S. Nos. 30/1, Plot Nos. 2 & 3, Shapar 76401.00 96. Sankriti Cottons Coimbatore 73, Devangapet, Street No. 2, Coimbatore 86913.00 97. Sarda & Sarda Jamnagar Sardar House, 1st Floor, Bedi Bunder Road, Opp. Pachvati Society, Jamnagar 141574.00 98. Satyam Corporation Gondal Near Khodiyar Hotel, National Highway, Near Mukhi Pump, Gondal 222711.00 99. SHA N SHA Rajkot 10, Jaganath Plot, B/....
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....Umiya Ginning & Oil Mill Botad Behind College, Paliyad Road, Botad 423969.00 125. V.P. Automobiles Rajkot Marketing Yard Road Opp. Water Tank, N.H. No. 8 B, Rajkot 580729.00 126. Vaniraj Cotton Industries Botad Gadhada Road, At-Nagalpar, Ta/Dist-Botad 570685.00 127. Vasantgiri Dhirajgiri Dudheli Dhudheli 154448.00 128. VLL & ASSOCIATES Rajkot 216, Golden Plaza, Tagor Road, Opp. Atul Motors, Rajkot 27000.00 129. Wisdom Cotton (A Unit of Wisdom Overseas Pvt. Ltd.) Kolkatta 605, Victory Society, #1, Ganesh Chandra Avenue, Kolkatta 550871.00 130. Yashvantgiri Narendragiri Dudheli Dhudheli 193193.00 131. Yogeshgiri Dhirajgiri Dudheli Dhudheli 98060.00 4. Petitioner also gave details of securities held by Financial Creditors. Petitioner also filed Statements of Accounts for the current year and for the last two financial years. Petitioner filed audited financial statements for the current year and for the last two financial years. Petitioner also filed statement of accounts for each Operational Creditor of the Corporate Debtor. 4.1 Petitioner also filed Recovery Certificate issued by the Debt Recovery Tribunal, Ahmedabad in OA No. 91 of 2016. Petit....
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....k also stated that it has taken physical possession of entire movable and immovable properties of the Corporate Debtor. Corporate Debtor moved an application for adjournment before the Recovery Officer on 14.8.2017 on the ground that one CNP Cotton is inclined to purchase the assets of the Petitioner. Kotak Mahindra Bank also stated that the Corporate Debtor closed its business since 2015 and there are no operations. The profit and loss account of the Corporate Debtor for the year ended 31st March, 2017 reflects accumulated loss of Rs. 15,23,83,941/- and for the period from 1.4.2017 to 31.7.2017 it reflects a loss of Rs. 2,37,03,055.25 ps. It is stated by the Kotak Mahindra Bank that the entire networth of the Corporate Debtor is negatived and the Company is classified as 'NPA' According to the Kotak Mahindra Bank, there is no chance of reviving this Corporate Debtor by Resolution Process. Kotak Mahindra Bank also stated that the Corporate Debtor committed default in payment of almost 99% of the total debt. Kotak Mahindra Bank is a Secured Creditor and it has to recover an amount of Rs. 66,32,97,734.50 ps. According to the Kotak Mahindra Bank, this Petition is filed with an ulterio....
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....Gujarat, vide Company Petition Nos. 388 of 2015 and 389 of 2015 against the Corporate Debtor and in such a case it is necessary to refer this Petition to the Larger Bench of the National Company Law Appellate Tribunal, Delhi wherein the issue of winding up was taken up for hearing. In support of the said contention, Kotak Mahindra Bank Ltd. also filed copy of the order of this Tribunal in CP (IB) 91 of 2017 in the matter of Aarti Industries Ltd. v. Khushbu Vinyl (P.) Ltd. In the case on hand, the Petitioner filed copies of the order dated 6.11.2017 passed by the Hon'ble High Court which shows that the Company Petitions Nos. 388 and 389 of 2015 were disposed of as withdrawn. Therefore, the arguments of the learned counsel appearing for Kotak Mahindra Bank Ltd. that this Petition has to be referred to the Larger Bench do not merit acceptance in view of the fact that no winding up proceeding is pending against the Corporate Debtor before the Hon'ble High Court of Gujarat. 12. The second objection raised by Kotak Mahindra Bank Ltd. is that it constitutes 95% of the total debt and it has also obtained Recovery Certificate against the Corporate Debtor from DRT-II, Ahmedabad and it is in....
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....e Company. In case if no Resolution Plan is there or in case the Resolution Plan is not approved by this Adjudicating Authority, then all the Creditors can claim the amounts from the assets of the Corporate Debtor as per the provisions of the Insolvency Code. Therefore, the admission of the Petition is not going to cause any prejudice to any of the Financial Creditors and at best it may cause delay of about six months in recovering their debts which they can realize later on also. The decisions referred to Supra relied upon by Tata Capital Financial Services Ltd., were rendered before the coming into force of Insolvency and Bankruptcy Code and therefore those decisions are not applicable to the facts of the case and in view of Section 238 of the IB Code. 17. Moreover, the Petitioner furnished the required information as per sub-section (3) of Section 10. Therefore, the Application is complete. The material on record establish that the Corporate Debtor has committed default in payment of financial debts as well as operational debts. 18. In view of the above discussion, this Petition is admitted under Section 10(4)(a) of the Code. 19. The Petitioner proposed the name of CA Prem La....