TaxTMI 
TaxTMI 
2019 (5) TMI 761
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....mmon and on common ground applications filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short) have been rejected, they were heard together and are being disposed of by this common judgment. Company Appeal (AT) (Insol.) No. 497 of 2018 2. This appeal has been preferred against the order dated 31st May, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, in (IB) No. 515/ND/2017, rejecting the application preferred by the Appellant- ('Financial Creditor') under Section 7 of the 'I&B Code'. 3. The Appellant- 'IFCI Limited' filed petition for initiation of 'Corporate Insolvency Resolution Process' against 'M/s. Golf Technologies Pvt. Ltd.'- ('Corporate Debtor') as....
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....alue of the invoked shares and the remaining balance, if any, after giving credit in respect of the value of invoked shares. Suh finding has been given taking into consideration the report of CIBIL dated 6th November, 2017 which mentions that there are "no delinquencies reported on the borrower ('Corporate Debtor') either current or for the last 24 months" in respect of "your institution" (Appellant/ 'Financial Creditor'). 6. According to the Appellant- 'IFCI Limited', it granted three loans to 'M/s. Cedar Infonet Private Limited' ('Principal Borrower'/ 'Corporate Debtor') on 29th August, 2008, 30th August, 2010 and 19th May, 2011, respectively. The details of same were shown in the paper book and have been enclosed in the paper book of ....
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....M/s. Cedar Infonet Private Limited') for holding that the substantial debt has been paid off. 11. A bare perusal of the chart as on 1st September, 2008, it is clear a total of 58,50,000 shares were invoked. Even we accept the plea taken by the Respondent that the second loan was availed on 30th August, 2010 and 1,08,50,000 of Tulip shares were pledged pursuant to loan availed on 29th August, 2008, and were extended as security for the second loan, such submission is against the Share Pledge Agreement dated 30th August, 2010. 12. In spite of service of notice, the Respondents in both the appeals have not appeared. Notices returned un-served and, therefore, it was ordered to make publication in the newspapers- one in English ('The Times....
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....any funds or client accounts that are managed by the Lender. 3.2.2. The economic risk attached to the said shares comprised in the Collateral (including due variations in market price) will continue to be the account of the Pledgor until such time as they are actually sold to a third person. 3.2.3. Any appreciation and/or depreciation in the price of the said shares between the time of invocation and the sale of such shares will continue to be to the account of the Pledgors." 16. The aforesaid clause makes it clear that it is date of sale of share which matters and not the date of invocation. Further due credit has been given in respect of sale of share which is reflected at page nos. 130 and 137 of the paper book of th....
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....ault is of Rs. 1 Lakh or more. The Hon'ble Supreme Court further held that in the case of a 'Corporate Debtor' who commits a default of the financial debt, the Adjudicating Authority has merely to see the records of the information utility or other evidence produced by the 'Financial Creditor' to satisfy itself that a default has occurred, which reads as follows: "27. The scheme of the Code is to ensure that when a default takes place, in the sense that a debt becomes due and is not paid, the insolvency resolution process begins. Default is defined in Section 3(12) in very wide terms as meaning non-payment of a debt once it becomes due and payable, which includes non-payment of even part thereof or an instalment amount. For the mea....
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....nbsp; xxx 30. On the other hand, as we have seen, in the case of a corporate debtor who commits a default of a financial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the financial creditor to satisfy itself that a default has occurred. It is of no matter that the debt is disputed so long as the debt is "due" i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date. It is only when this is proved to the satisfaction o....