2019 (10) TMI 372

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....a, Mr. Shrey Patnaik, Advocates for RP. JUDGMENT BANSI LAL BHAT, J. This appeal, filed by 'T. Johnson', majority shareholder and erstwhile Managing Director of 'M/s St. John Freight System Limited' (hereinafter referred to as 'Corporate Debtor') seeks to assail the legality and correctness of order of admission of application of Respondent No. 1 - 'Phoenix ARC Pvt. Ltd.' (hereinafter referred to as the 'Financial Creditor') filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code') vide order dated 10th December, 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Division Bench Chennai by virtue whereof the application of Financial Creditor came to be admitted w....

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....orporate Insolvency Resolution Process was filed. 3. The Adjudicating Authority, upon hearing the parties and consideration of the matter dismissed the plea of limitation and objection regarding inflation of claim set up by the 'Corporate Debtor' and passed the impugned order of admission. In arriving at its finding on the issues raised, the Adjudicating Authority was largely influenced by the documents including revival letter dated 20th February, 2016, balance confirmation dated 22nd February, 2016 executed by the 'Corporate Debtor' and factum of last payment having been made by the Corporate Debtor on 14th November, 2017. 4. Heard learned counsel for the parties and perused the record. 5. Learned counsel for the Appellant submit....

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....e Adjudicating Authority at page 121 of the paper book, which acknowledges balance as according to Appellant at Rs. 58,53,69,581/- on 15th March, 2018 though disputing the correctness of balance worked out by the Financial Creditor at Rs. 73,08,04,386/- as on 15th March, 2018. It is also an admitted fact that Corporate Debtor made the last payment on 14th November, 2017. One more material fact requiring to be noticed is the case put forth by the Corporate Debtor that subsequent to assignment of debt by State Bank of Travancore in favour of the Respondent - Financial Creditor in terms of Assignment Deed dated 31st March, 2016, the Corporate Debtor paid off an amount of Rs. 1.38 Crores to the Respondent - Financial Creditor. The assignment of....

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....nt of debt is of no relevance in so far as the liability and obligation on the part of Corporate Debtor is concerned. The assignment only changes the hands of the creditor clothing the assignee with authority to enforce the claim. The liability in regard to claim as regards the Corporate Debtor remains intact and does not get diluted in any manner whatsoever. The Adjudicating Authority has the jurisdiction to initiate Corporate Insolvency Resolution Process by passing order of admission on an application of the Financial Creditor or it Assignee if the amount of debt exceeds Rupees One Lakh. Admittedly, the debt in respect of default allegedly exceeded the prescribed amount of Rupees One Lakh. Admission of a claim pursuant to collation and v....