TaxTMI 
TaxTMI 
TaxTMI 
2019 (7) TMI 103
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.... of the Insolvency and Bankruptcy Code, 2016 r/w Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against M/s. S.N.K.M and Sons Timbers (P) Limited (hereinafter referred to as 'Corporate Debtor'). The prayer made is to admit the Application, to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor, to declare moratorium and to appoint Interim Resolution Professional (IRP). 2. The brief facts of the case are that the 1st Financial Creditor viz., Kishore Kumar Golecha, HUF, has paid Rs. 10 lakhs to the Corporate Debtor on 06.04.2017. Copy of the Ledger Account reflecting the payment of Rs. 10 lakhs made to the Corporate Debtor is placed at page 10 of the typed set filed w....
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....Ledger Account reflecting the payment of Rs. 10 lakhs made to the Corporate Debtor is placed at page 40 of the typed set filed with the Application. In order to secure the loan, the Corporate Debtor executed Demand Promissory Note in favour of the 2nd Financial Creditor which is placed at page 39 of the typed set filed with the Application. Besides that, the Corporate Debtor issued a Receipt acknowledging the payment of a sum of Rs. 10 lakhs from the 2nd Financial Creditor and promised to repay the said amount in four monthly instalments of Rs. 2.50 lakhs from May, 2017 till August, 2017 and in case of default, the Corporate Debtor had agreed to pay the overdue interest at the rate of 2.5 per cent p.m. Copy of the Receipt acknowledging the ....
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....ebtor further stated that other than the aforementioned four properties, the Corporate Debtor does not own any other assets in its name. On 15.03.2019, the Corporate Debtor received an e-auction notice dated 13.03.2019 issued by the South Indian Bank, informing the Corporate Debtor that the bank is proceeding to sell the aforementioned properties under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The Corporate Debtor has been burdened with heavy loans as mentioned above and is unable to repay the same owing to its severe financial constraints and lack of business prospects. Finally, the Corporate Debtor has stated that the Company is amendable to any orders that would be passed by thi....
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....ed that the aforesaid properties are exclusively mortgaged to the bank as early as on 30.10.2017 as evident from the Memorandum relating to deposit of title deeds and it is needless to mention that the secured properties are not belonging to the Corporate Debtor. 8. Heard the Counsels for the Financial Creditors, Corporate Debtor and the Counsel representing the South Indian Bank and perused the pleadings including the documents placed on file. 9. The perusal of the Affidavit filed by the Corporate Debtor shows that the Corporate Debtor has fairly admitted that the loans were availed from the Financial Creditors and during the course of arguments, the Counsel for the Corporate Debtor has submitted that the Corporate Debtor has no objectio....
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....st 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 (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. 13. The supply of essential goods o....