2019 (11) TMI 843

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..... 2. The petitioner and respondent entered into an agreement of Leave and License on 25.06.2008, for office premises and other services at Apeejay Express, 2nd floor, Plot No. 87, Sector-17, Vashi Mumbai, 3 Dinshaw Vacha Road, Churchgate, Mumbai. Pursuant to the original agreement and renewals thereof the Petitioner had provided office premises and other services as agreed and required by the Respondent. However, the Respondent despite several requests has defaulted in making payments towards service tax and license fees to the tune of Rs. 27,67,203/-. The Petitioner has therefore filed this petition as an Operational Creditor praying for initiation of Corporate Insolvency Resolution Process of the Corporate Debtor for its inability to l....

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....he Corporate Insolvency Resolution Process of the Corporate Debtor. Affidavit in compliance under Section 9(3)(b) and 9(3)(c) of Code are on record to corroborate his case. 7. Ld. Counsel for the Corporate Debtor has raised a preliminary objection regarding maintainability of the petition on the ground that they are an insurance company and therefore, they are "Financial Services Provider", the business of which is strictly regulated by the "Financial Sector Regulator" and, therefore, as per the provisions of the IBC, the present petition cannot lie against the respondents and the same deserves to be dismissed. Ld. Counsel for the Corporate Debtor has further given the example of Banks, where any such proceedings against the Banks cannot....

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....arly fallacious. There is no absolute bar of any kind, as contended by the Learned Counsel for the Corporate Debtor, and the bar is only operative for such institutions which are covered under financial services as defined under Section 3 (16) of the IBC, 2016. For the sake of convenience and ready reference, the provisions of Section 3 (16) are quoted below: - "Section 3 (16): - "financial service" includes any of the following services, namely: - (a) Accepting of deposits; (b) Safeguarding and administering assets consisting of financial products, belonging to another person, or agreeing to do so; (c) effecting contracts of insurance; (d) offering, managing or agreeing to manage assets....

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....of the Code clearly includes the transactions effecting contract of insurance. However, the Operational Creditor does not have any claim in respect of contract of insurance. The claim is with respect to the outstanding license fees and the service tax amounts. Hence, the Corporate Debtor cannot use the provisions of Section 3 of the Insolvency and Bankruptcy Code, 2016 as a blanket cover to claim exclusion from IBC Proceedings on the ground that it is a financial service provider. 12. Considering the circumstances this Tribunal is inclined to admit this petition and initiate CIRP of the Corporate Debtor. Accordingly, this petition is admitted. A moratorium in terms of Section 14 of the Insolvency & Bankruptcy Code, 2016 shall come into e....