TaxTMI 
TaxTMI 
TaxTMI 
2017 (9) TMI 1779
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....o Adjudicating Authority) Rules, 2016, ("IB Rules" for short) with a request to initiate Corporate Insolvency Resolution Process against Siddhi Vinayak Logistics Ltd., treating it as 'Corporate Debtor'. 2. Applicant is a Bank constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Registered Office in New Delhi. The Respondent is a Company incorporated under the Companies Act, 1956 having its Registered Office in Surat, Gujarat State. The Authorised Share Capital of the Respondent Company is Rs. 25,00,00,000. The Paid- up Share Capital of the Company is Rs. 23,56,93,718. 3. The Applicant Bank, vide its Sanction Letter dated 13th June, 2013 sanctioned Term Loan Facility....
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....its Directors and Guarantors to pay outstanding amount of Rs. 98,48,76,598/- as on 23.7.2015 with further interest thereon. 5. Applicant proposed the name of Shri Dushyant C. Dave as 'Interim Resolution Professional' and filed his Written Communication. 6. Applicant filed all the documents executed by the Respondent Company pursuant to both the Sanction Letters. Applicant also filed Certificate of Charge and CIBIL Report. Applicant stated that Bank filed Original Application No. 108 of 2017 before Debt Recovery Tribunal under section 19 of the Recovery of Debts Due to Banks & Financial Institutions Act, 1993, praying for order against the Respondent, its Directors and Guarantors for an amount of Rs. 1,06,86,68,106/- and for taking....
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....iled by the Applicant clinchingly establish that Respondent has committed default in payment of the amount. Applicant also filed Original Application No. 108 of 2017 before the Debt Recovery Tribunal, Ahmedabad under section 19 of the Recovery of Debts Due to Banks & Financial Institutions Act, 1993. The Ledger Account of the Statement of Account also show that financial debt is due from the Respondent/Corporate Debtor to the Applicant/Financial Creditor. Moreover, at the request of the Respondent Company the loans were restructured. No doubt, there was a moratorium for payment of principal amount for 18 months and interest for 12 months. 8.4 It is contended by the learned Counsel for the Respondent that Applicant Bank treated the Responde....
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....ng defence in this case. It is also stated in the Objections that CBI investigation is going on against the Company on a complaint filed by Bank of Maharashtra. 8.5(a) This aspect would go to show that all is not well with the Respondent Company. The material on record clearly go to show that Respondent Company committed default in making payment of financial debt. 9. The Hon'ble National Company Law Appellate Tribunal, on 17th January, 2017, in Company Appeal (AT) (Insolvency) Nos. 1 & 2 of 2017 in the matter of Innoventive Industries Ltd. v. ICICI Bank has held that the Adjudicating Authority has to satisfy only about the existence of the default and whether the Application is complete in all respects or not. In the case on hand, th....
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....g, 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 and Enforcement of Security Interest Act, 2002 (54 of 2002); (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. (i) However, the order of moratorium shall not apply in respect of supply of essential goods or services to Corporate Debtor. (ii) The order of moratorium is not applicable to the transactions th....