TaxTMI 
TaxTMI 
2019 (4) TMI 919
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....ard of Directors of M/S. VHCL Industries Limited in their meeting held on 23rd January, 2018 resolved to authorize Mr. Bhushan Chandrakant Vayeda, Authorized Representative to file this petition before NCLT for initiating Corporate Insolvency Resolution Process under Section 10 of the 1B Code in Form-6. 3. Pursuant to the said Resolution, VHCL Industries Limited through its Authorized Representative filed this petition before this Tribunal. 4. M/S, VHCL Industries Limited is a company registered under the Companies Act having its Registered Office in Village Kherdi, Silvassa, Union Territory of Dadra & Nagar Haveli with a Paid Up Share Capital of Rs. 5148.00 lacs. The list along with latest address of the Directors of the corporate applicant is placed at page No. 8 to the application marked Annexure IA. 5. It is further represented by the corporate debtor that the applicant company has the following Financial Creditors; 6. It is further submitted that the following are the unsecured financial creditors; 7. It is also stated that there are Operat....
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....10. To prove that default is in existence as on the date of filing the application, the applicant has placed copy of relevant books of accounts of the corporate debtor at page No. 81A- 81M marked Annexure - 9, ledger account of the operational creditors at page No. 82-120 marked Annexure - 9A and provisional financial statements for the current financial year made up to date not earlier that fourteen days from the date of the application at page No. 509-524 marked Annexure 16 to the petition. The company has also filed copies of audited financial statements of the corporate debtor for the last two financial years at page No. 345-508 marked Annexure - 15 and the provisional financial statements as on 27.01.2018 at page No. 509-524 marked Annexure - 16, as prescribed under the Rules of Insolvency & Bankruptcy Code. 11. The applicant company has given the names and addresses of the financial creditors, operational creditors of the company and details of dues outstanding to them and also particulars of the security created on the assets of the company. Despit....
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....bsp; 15. That, Central Bank of India has also filed reply. That, main objection of the bank is that corporate debtor has filed the instant application to frustrate the statutory rights of the bank for further proceedings under the SARFAESI Act, 2002. The said proceeding is filed by the bank against the corporate debtor and its guarantors on its default of repayment of outstanding amount of Rs. towards Letter of Credit Facilities. 16. Learned counsel appearing on behalf of Bank of India also vehemently objected for triggering Insolvency Proceedings against the corporate debtor. That the corporate debtor has approached this Court not with clean hands. 17. Heard both the sides at length. Also perused the documents filed by the Corporate Debtor/applicant. On perusal of the petition goes to show that it is complete in all respect. Further, admittedly, M/S. VHCL Industries Limited is liable to pay financial debt to its financial creditors including State Bank of India, Central Bank of India and Bank of India. No other objection has been raised by the financia....
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....sp;dispute that there is no default or that debt is not due and is not payable in law or in fact. They may also oppose admission on the ground that the Corporate Applicant is not eligible to make application in view of ineligibility under Section 11 of the I & B Code. The Adjudicating Authority on hearing the parties and on perusal of record, if satisfied that there is a debt and default has occurred and the corporate applicant is not ineligible under Section 11, the adjudicating authority has no option but to admit the application, unless it is incomplete, in which case the corporate applicant is to be granted time to rectify the defects. 22. Section 10 does not empower the adjudicating autftority to go beyond the records as prescribed under section 10 and the information as required to be submitted in Form 6 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority) Rules, 2016 subject to ineligibility prescribed under Section 11. If all information are provided by an applicant as required under Section 10 and Form 6 and if the ....
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....rty of the Corporate Debtor and other proceeding cannot proceed further in any Court or Tribunal or Authority in view of order of 'moratorium' as may be declared under section 13 and prohibition that may be imposed under section 14 of I & B Code. 25. Similarly, if any action has been taken by a Financial Creditor' under section 13(4) of the SARFAESI Act, 2002 against the Corporate Debtor or a suit is pending against Corporate Debtor under section 19 of DRT Act, 1993 before a Debt Recovery Tribunal or appeal pending before the Debt Recovery Appellate Tribunal cannot be a ground to reject an application under section 10, if the application is complete. 26. Any proceeding under section 13(4) of the SARFAESI Act, 2002 or suit under section 19 of the DRT Act, 1993 pending before Debt Recovery Tribunal or appeal pending before Debt Recovery Appellate Tribunal cannot proceed in view of the order of moratorium as may be passed. 21. By following the above stated judicial precedent of the NCLAT, it is well settled that pendenc....
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....sp;Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 27. This Adjudicating Authority hereby order moratorium under Section 13(1)(a) of the 1B Code prohibiting the following as referred to in Section 14 of the Code; (a) the institution of suits or continuation of pending suits or proceedings against the Company/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 Company/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 Company/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 recov....