TaxTMI 
TaxTMI 
2019 (6) TMI 368
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....een authorized by the competent authority for filing the petition against the respondent-corporate debtor under the provisions of the Code. The authority letter issued by the Zonal Office of the bank dated 26.06.2018 is at Annexure A/2. Mr. Vishal Kumar Prasad holds a Power of Attorney dated 06.02.2017 in his favour authorizing him to do various acts including advance money of the bank on sufficient and reliable security or otherwise in compliance with the instructions and orders of the bank; to take and use all lawful legal proceedings, actions and means for realizing, recovering of debts, advances and claims due to the said Bank and also to institute and conduct, defend proceedings relating to the property, assets and affairs of the said Bank and realization of its claims, etc. The Power of Attorney is at Annexure A/1. 2. The Financial Creditor-petitioner has filed application in Form 1 as prescribed in Rule 4(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity the 'Rules'). The respondent was incorporated as a company on 15.02.2007, under the Companies Act, 1956. Its authorized share capital is Rs.40 crores and the paid up shar....
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....he mortgage deeds are at Annexures A/8 to A/10, the copy of the title deeds which were deposited with the bank for creation of the equitable mortgage are at Annexure A-11 (colly) (pages 84 to 672). 8. The charge over the immovable property was also registered with the Registrar of Companies and the record of registration of charge available with the Registrar of Companies is at Annexure A/12. 9. The names of guarantors of loan have been described as Smt. Shallu Gupta W/o late Shri Naresh Kumar Gupta, Smt. Amrit Bala W/o late Shri Shambu Nath, Shri Narinder Chugh S/o Shri Mehar Chand Chugh and late Shri Naresh Kumar Gupta represented through his LRs, Ms. Aditi Gupta D/o late Shri Naresh Kumar Gupta, Shri Aditya Gupta S/o late Shri Naresh Kumar Gupta and Smt. Shallu Gupta. 10. It is further stated that corporate debtor failed to pay the interest and installments regularly due to which the account was classified as NPA on 31.03.2016 w.e.f. 31.03.2015 by the Central Statutory Auditors. The bank also issued a notice under Section 13(2) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) claiming the co....
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....s, etc., has not been denied. 15. It was further stated that the corporate debtor was undergoing immense financial stress due to false commitments and assurances given by the financial creditor, after the demise of Mr. Naresh Kumar Gupta, the erstwhile Managing Director. Mr. Naresh Kumar Gupta is said to have expired on 14.11.2014. The corporate debtor is undergoing financial stress since the year 2014. It is further averred that one Mr. Narinder Chugh, who was family friend of erstwhile Managing Director came forward to run the operations of the corporate debtor. Several documents were got signed from the erstwhile Managing Director as well as Narinder Chugh on false pretext. The financial assistance was being extended to the corporate debtor to optimize the business operations which were hampered due to the sudden demise of Mr. Naresh Kumar Gupta. 16. It is also averred that despite providing all documents, none of the assurances and commitments were kept by the financial creditor and instead new charge was created on the personal properties of the wife of the erstwhile Managing Director and Shri Narinder Chugh in a desperate attempt to safeguard the outstanding liabilities....
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....he Code. 21. Sub-Section (3) of Section 7 of the Code read as under:- "(3) The financial creditor shall, along with the application furnish- (a) record of the default recorded with the information utility or such other record or evidence of default as may be specified; (b) the name of the resolution professional proposed to act as an interim resolution professional; and (c) any other information as may be specified by the Board." 22. In the instant case, the petitioner-financial creditor adduced abundant evidence to show the default which has been committed by the respondent-corporate debtor and the same has not been disputed. The respondent-corporate debtor is also stated to have executed the balance confirmation letter dated 13.02.2015 whereunder the loan facilities were renewed. The balance confirmation letter dated 13.02.2015 are at Annexure A/37 (colly). There are other balance confirmation letters dated 28.05.2011, 13.02.2015 and 15.04.2015 in respect of different accounts. There is no denial of the balance confirmation letters in the reply. The balance outstanding amount as on 24.06.2018 in different accounts has also been described ....
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..... In view of the above, we hold that the petition deserves to be admitted. Therefore, the petition is admitted and the moratorium declared in terms of sub-section (1) of Section 14 of the code as under:- (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 and Enforcement of Security Interest Act, 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. 28. It is further directed that the supply of essential goods or services to the corporate debtor as may be specified, shall not be terminated or suspended or interrupted during mo....