AI Drafter 
TaxTMI 
TaxTMI 
2019 (10) TMI 108
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....nt, viz., Mrs. Parulben Pankajbhai Tejani is an individual person, having resident at B-56, Radhakrishna Society, Khodiyar Nagar Road, Varachha, Surat-395 006, Gujarat. 3. The respondent-corporate debtor, M/s. Tirupati Balaji Polymers Pvt. Ltd., is a Company, bearing CIN: U24134GJ2011PTC064442, incorporated on 15.03.2011, under the provisions of the Companies Act 1956, having its Registered Office at Block No. 274, Kanyanshi Road, Pipodara, Surat-394 110, Gujarat. 4. The Authorized Share Capital of the corporate debtor is Rs. 2,60,00,000/- (Rupees Two Crore Sixty Lakhs only) divided into 26,00,000 nos. of Equity Shares of Rs. 10/- each. The issued, subscribed and paid up share capital of the company is Rs. 2,58,33,120 (Rupees Two Crore Fifty Eight Lakhs Thirty Three Thousand One Hundred Twenty only) divided into 25,83,312 nos. of Equity Shares of Rs. 10/- each. 5. It is the case of the financial creditor that she advanced unsecured financial loan of Rs. 8 lakhs (Rupees Eight Lakhs only) to the Corporate Debtor company, viz., M/s. Tirupati Balaji Polymers Pvt. Ltd., for its purpose to discharge existing repayment liability towards loan of Bank of India under One Time Settle....
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.... stated that thereafter the petitioner had issued Demand Notice dated 03.01.2018 to the corporate debtor and had called upon to pay the entire outstanding amount together with the accrued interest and cost as per the loan agreement. (A copy of the Demand Notice is annexed with the application as Annexure-D). Even after issuance of Demand Notice, the Corporate Debtor failed to pay the outstanding amount to the petitioner. The applicant further sent a reminder letter on 08.02.2018 to the corporate debtor by making demand of repayment of loan as per the terms and conditions agreed therein. The petitioner has further annexed a copy of the second reminder/demand notice dated 08.02.2018 with the present IB Petition as Annexure-E. 9. The Financial Creditor has furnished all the requisite details of the amount of loan disbursed to the Corporate Debtor company in terms of the provisions contained in the I & B Code, i.e., Part-IV of the application in prescribed Proforma under Rule-4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 read with Section 7 of the Code, which are described as under; Particulars of Financial Debt 1 Total amount of de....
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.... 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. (4) The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor under sub-section (3). (5) Where the Adjudicating Authority is satisfied that- (a) a default has occurred and the application under sub-section (2) is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application; or (b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application: Provided that the Adjudicating Authority shall, before rejecting the application under clause (b) of sub-section (5), give a notice to the applicant to rectify the defect in....
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.... Code. 15. In the present matter, the corporate debtor has already admitted its debt liabilities to the extent of Rs. 8.00 lakhs (Rupees Eight lakhs only) pursuant to a loan agreement dated 01.09.2017 and, thus, expressed its inability to discharge such debt liability due to loss suffered in the business and bad market conditions. Hence, in order to ascertain the current financial position of the corporate debtor Company restricted its loan liability only towards present Petitioner but in respect of the other creditors also, this Court felt appropriate to call for certain information/clarification vide its order dated 07.06.2019 from the corporate debtor to furnish details of its other unsecured creditors with amount outstanding in addition to the current debts due to the present financial creditor. 16. In response to the above stated direction for providing requisite information, the Respondent counsel submitted a list of secured and unsecured creditors of the Corporate Debtor Company and further explained that there is no specific bank loan outstanding against the company. Hence, there is no financial creditor except to the present petitioner in the category of the secured ....
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....riggered the moment default is of rupees one lakh or more (Section 4). The corporate insolvency resolution process may be triggered by the corporate debtor itself or a financial creditor or operational creditor. A distinction is made by the Code between debts owed to financial creditors and operational creditors. A financial creditor has been defined under Section 5(7) as a person to whom a financial debt is owed and a financial debt is defined in Section 5(8) to mean a debt which is disbursed against consideration for the time value of money. As opposed to this, an operational creditor means a person to whom an operational debt is owed and an operational debt under Section 5 (21) means a claim in respect of provision of goods or services. 28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor- it need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under sub-section (1) in such form and manner as is prescribed, which takes us to the Insolvenc....
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.... (i) This Adjudicating Authority hereby appoints Shri Kashyap Shah, as "Interim Insolvency Resolution Professional" having address at A-1, Sejal Park, Opp. Nathiba Nagar No.2, Harni Road, Vadodara-390 002, E-mail: [email protected] and having Registration No. IBBI/IPA-002/IP-N00367/2017-18/11035 under Section 13 (1) (c) of the Code. (ii) That the order of Moratorium under Section 14 of the Code shall have effect from 12.07.2019 till the completion of Corporate Insolvency Resolution Process or until this Bench approves the Resolution Plan under Sub-section (1) of Section 31 or passes an order for Liquidation of Corporate Debtor under Section 33 as, the case may be. (iii) That the Bench hereby prohibits the institution of suits or continuation of pending suit 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; transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the Corporate D....