TaxTMI 
TaxTMI 
TaxTMI 
2019 (11) TMI 963
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.... U15139 DL2004 PTC 124342) against whom initiation of Corporate Insolvency Resolution Process has been prayed for, was incorporated on 28.01.2004 having its registered office situated at A-5, Jhilmil Industiral Area, Shahdara, Delhi - 110095. Since the registered office of the respondent corporate debtor is in Delhi, this Tribunal having territorial jurisdiction over the NCT of Delhi is the Adjudicating Authority in relation to the prayer for initiation of Corporate Insolvency Resolution Process in respect of respondent corporate debtor under sub-section (1) of Section 60 of the Code. 3. It is appropriate to mention that the applicant Shriram Transport Finance Company Limited is a Non-Banking Financial Company registered with the Reserve Bank of India and is engaged in the business of financing and leasing of vehicles. 4. Mr. Anwar Sadat, Regional Business Head and authorized representative of the applicant, has preferred the present application on behalf of the applicant for initiation of corporate insolvency resolution process against the respondent corporate debtor in terms of the provisions of the Code. 5. The Corporate Debtor approached the Financial Creditor for availing l....
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....996, which is currently pending before the Ld. ADJ, Tis Hazari District Courts, Delhi. The Ld. ADJ, vide order dated 31.03.2018, granted a conditional stay in the petitions under Section 34 of the Arbitration and Conciliation Act, 1996. The condition for stay was deposit of Rs. 4,00,000/- (Rupees Four Lakhs only) by the Corporate Debtor for each of the Arbitral awards within a period of ten days from the date of the order. The said period expired on 10.04.2018. However, as the said deposits were not made in fulfilment of the preconditions, there is no stay of the Arbitral awards. The financial creditor had also filed execution petitions before the District Court at Tis Hazari, New Delhi to seek enforcement/execution of the arbitral awards. The said execution petitions are pending adjudication. 10. As per part IV of the application it is claimed that a sum of Rs. 5,64,46,192/- (Rupees Five Crores Sixty-Four Lakhs Forty Six Thousand One Hundred and Ninety Two Only) is due from the respondent company which includes interest and expenses as on 31.12.2018 as per the award passed in the matter. 11. It is prayed for initiation of corporate insolvency resolution process against the respo....
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....rly be termed as 'Financial Creditor' of the respondent corporate debtor so as to prefer the present application under Section 7 of the Code. As per the provisions of Section 7 of the Code, no prior notice under Section 8 of the Code is required in respect of a financial debt. 20. The application filed by the applicant financial creditor has to be admitted under sub-section 5 (a) of Section 7 of the code, on satisfaction that: I. Default has occurred. II. Application is complete, and III. No disciplinary proceeding against the proposed IRP is pending. 21. An application under Section 7 of the Code is acceptable so long as the debt is proved to be due and there has been occurrence of existence of default. What is material is that the default is at least 1 lakh. In view of Section 4 of the Code, the moment default is of Rupees one lakh or more, the application to trigger Corporate Insolvency Resolution Process under the Code is maintainable. In the present case the claimed financial debt in the light of the award exceeds Rs. 564 Lacs and the respondent has defaulted in making payment of the debt. 22. In connection with the 2nd requirement of sub-section 5 (a) of Section 7 ....
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....gly, it is argued that the award has not attained its finality and therefore cannot be enforced. 27. In this regard there is no dispute that the ex-parte awards in question have not been stayed. The present claim of financial debt is thus due and payable in law. Once there is a debt and default and the application under the Code is complete the Adjudicating Authority is bound to admit the application. Section 7 application filed under the Code cannot be rejected on the ground that the claim has been disputed. Adjudicating Authority is only to ascertain the existence of a default. The Adjudicating Authority is not required to decide as to what is the actual amount of claim and other details. The Code requires the adjudicating authority to only ascertain and record satisfaction in a summary adjudication as to the occurrence of default before admitting the application. 28. Respondent has also raised an objection that execution proceeding for enforcement of the award is pending and is still sub-judice. In this regard it is well settled that pendency of execution proceedings cannot be an impediment or bar to initiate the Corporate Insolvency Process against the corporate debtor under ....
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.... 34. In the aforesaid background it is seen that the applicant clearly comes within the definition of Financial Creditor. Respondent has neither denied the availment of various loans granted by the financial creditor, nor denied the execution of Loan cum Hypothecation Agreements. Besides there is an enforceable award in favour of the applicant. The material placed on record confirms that the respondent corporate debtor committed default in repayment of the financial debt. On a bare perusal of Form - I filed under Section 7 of the Code read with Rule 4 of the Rules shows that the form is complete and there is no infirmity in the same. It is also seen that there is no disciplinary proceeding pending against the proposed IRP. We are satisfied that the present application is complete in all respect and the applicant financial creditor is entitled to claim its outstanding financial debt from the corporate debtor and that there has been default in payment of the financial debt. 35. As a sequel to the above discussion and in terms of Section 7(5)(a) of the Code, the present application is admitted. 36. Mr. Navjit Singh having registration number IBBI/IPA-001/IP-P00314/2017-18/10578 resi....