TaxTMI 
TaxTMI 
2018 (8) TMI 1541
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....and Jain is a Director of the Financial Creditor No. 3. Its assigned identification number U51909DL2004PTC126579. It has its registered office at 201, Surya Kiran Building 19, Kasturba Gandhi Marg, Connaught Place, New Delhi-110001. 2. The Corporate Debtor No. 1-M/s. Fantastic Buildcon Private Limited was incorporated on 29.12.2004. The identification number of the Corporate Debtor is U45201DL2004PTC131674 and its registered office is situated at C-43, LGF, Jangpura Extension, New Delhi-110014. Its authorised share capital is Rs. 1,00,000.00/- divided into 10,000 equity shares of Rs. 10/- each and the paid-up share capital is Rs. 1,00,000.00/- consisting of 10,000 shares of Rs. 10/- each as per the master data available on the website of Ministry of Corporate Affairs which has been placed on record (Annexure-B). It is pertinent to mention here that the Corporate Debtor Nos. 2 & 3 are the Directors in the Corporate Debtor No. 1-Company. 3. The Financial Creditor has proposed the name of Shri Om Prakash Vijay, 2250, Gali Raghu Nandan, Naya Bazar, Delhi-110006, email id - [email protected] to act as Interim Resolution Professional. He has registration No. IBBI/IPA-001/IP-P00491/....
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....e balance sheet of the Company, duly audited, for the year ending 31.03.2014. A copy of the audited balance sheet as on 31.03.2014 has been placed on record (Annexure-F). Subsequently, on or about 02.02.2015, the Petitioners, through Petitioner Nos. 1 & 2, entered into an agreement (for brevity 'Share Purchase Agreement') with the Corporate Debtor, inter alia providing that: A. that the entire shareholdings of the Petitioners would be transferred by way of sale at par value to Mr. Lalit Modi, Director and shareholder in the Corporate Debtor, i.e. 7,500 equity shares of Rs. 10/- each (being 75% of issued capital and paid-up capital all the Corporate Debtor held by the Financial Creditor No. 1 & 2; B. that Mr. Lalit Modi and the Corporate Debtor would jointly undertake to refund the entire unsecured loan of Rs. 18,67,11,000/- to the Financial Creditors on or before 31.03.2015; C. that in view of the payment being made by 31.03.2015, the Financial Creditors did not specifically provide for payment of interest on the said borrowings specifically. A copy of the Share Purchase Agreement dated 02.02.2015 has been placed on record (Annexure-A). 8. It ....
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....tioner Nos. 1 & 2 in connivance with Mr. Lalit Modi. The said amount is/was not counter signed by any of the alleged parties to the share purchase agreement. Under the alleged share purchase agreement, the undertaking to pay the alleged amount of Rs. 18,67,11,000/- as mentioned was taken over by Mr. Lalit Modi personally. E. Various legal proceedings have been initiated by the Respondent Company and its associate entities against Mr. Lalit Modi and his family members. It has also filed criminal complaints as well against Mr. Lalit Modi and his family members in Economic Offence Wing of Delhi Police regarding cheating and criminal breach of trust. F. The alleged share purchase agreement contains arbitration clause therefore the same cannot be adjudicated under the Code as the same is subject matter of arbitration. 11. The Petitioners have filed rejoinder reiterating the averments made in the application and denying the objection raised by the Corporate Debtor. 12. Mr. Krishna Kumar, learned Counsel for the petitioners has argued that all requirements of Section 7 for the initiation of Corporate Insolvency Resolution Process by a Financial Creditor stand fulfi....
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....rofessional shall immediately make public announcement with regard to admission of this application under Section 7 of the Code. The expression 'immediately' means within three days as clarified by Explanation to Regulation 6(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 17. We also declare moratorium in terms of Section 14 of the Code. A necessary consequence of the moratorium flows from the provisions of Section 14 (1) (a), (b), (c) & (d) and thus the following prohibitions are imposed which must be followed by all and sundry: "(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 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....
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....fraudulently, collusively between Petitioner No. 1 & 2 on the one hand and Mr. Lalit Modi on the other hand. Such like allegations are not easy to prove nor any factual basis has been disclosed to show the fraud or collusion. The allegation of fraud is levelled very often but are rarely proved. It is not the case of the respondent that the document is antedated or that it has never been executed. Moreover, in para 4 at page 7 of the reply it is conceded that the present management at the time of take over of the respondent company had knowledge of the debt payable to the petitioners. This completely belay the theory of fraud and collusion and in fact is a pure afterthought. A perusal of agreement specifically states that both the Company and Mr. Lalit Modi have jointly undertaken to repay the loan amount by 31.03.2015. Otherwise also the share purchase agreement did not in any way dilute the obligation of the Respondent Company to repay the loan together with interest. In view thereof, we do not find any substance in such kind of objection raised on behalf of respondent. 21. The other argument raised by the Corporate Debtor with regard to initiation of various legal proceedings ....