2018 (1) TMI 1365

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....ociated Cylinders and Accessories Private Limited (hereinafter referred to as the 'Corporate Debtor') under Section 9 of the Insolvency and Bankruptcy Code 2016 (for short I&B Code) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The prayer made is to admit the Application and to initiate the Corporate Insolvency Resolution Process under the I&B Code, 2016 by appointing an Interim Resolution Professional (IRP). Heard Ld. Counsel for the Operational Creditor and Ld. Sr. Counsel for the Corporate Debtor and perused the record. 2. The brief facts of the case are that the Operational Creditors had worked with the management of the Corporate Debtor for the past 30 years and the....

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.... Bankruptcy (Application to Adjudicating Authority) Rules, 2016 to the Corporate Debtor on 17.08.2017. 4. The Operational Creditors filed this Petition under Section 9 of the I&B Code, 2016 claiming Rs. 20,17,744/- showing the default date as 06.10.2016 being the date of direction of the Authority Appointed under the Payment of Wages Act, 1936. 5. Ld. Sr. Counsel for the Corporate Debtor appeared and filed a preliminary Counter on 17.10.2017 and a detailed Counter on 09.01.2018. In the Counters, it is stated that the Operational Creditors claiming to be the workmen of the Corporate Debtor have collectively filed the above Petition claiming payment of alleged delayed wages. The alleged Operational Creditors collectively do not fall wit....

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.... reasons that at the end of Form-5, the "instructions" are appended wherein, in the "note", it has been provided that "where workmen/employees are Operational Creditors, the Application may be made either in an individual capacity or in a joint capacity by one of them who is duly authorised for the purpose". In this case, the workmen has joined together to file an Application in a joint capacity through one of them viz. Mr. V. Manoharan, who has been authorised through Power of Attorney by other Operational Creditors to send notice and to file the Application under Section 9 of the I&B Code, 2016 on their behalf. The second main plea is that the claim of the individual workman is below the threshold as prescribed under Section 4(1) of th....

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....ect 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. It is hereby ordered to prohibit all of the following, namely: (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 includin....