2019 (12) TMI 167

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....a,   The 'Punjab National Bank'- ('Financial Creditor') filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short) for initiation of the 'Corporate Insolvency Resolution Process' against 'M/s. Hanung Toys and Textiles Limited'- ('Corporate Debtor'). The Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, by impugned order dated 28th March, 2019 admitted the application. 2. Learned counsel for the Appellant submitted that the order of liquidation has already been passed by the Hon'ble High Court of Delhi and 'Official Liquidator' has already been appointed and therefore, the application under Section 7 of the 'I&B Code' was not maintainable. 3. On the ....

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....h, 2014. 7. A 'Master Restructuring Agreement' was also executed by the 'Corporate Debtor' in favour of the 'Punjab National Bank' on 30th June, 2014, but the Company failed to fulfil its commitments under 'Corporate Debt Restructuring Scheme'. Therefore, the 'Corporate Debt Restructuring Scheme' was revoked and accounts were treated as NPA since 31st December, 2013. 8. Notice under Section 13(2) of the 'SARFAESI Act, 2002' was served on 12th October, 2015 by the 'Punjab National Bank' on the 'Corporate Debtor' followed by Notice under Section 13(2) by the 'Bank of Baroda' on the 'Corporate Debtor' on 17th November, 2015. 'Edelweiss Asset Reconstruction Company' also served notice under Section 13(2) of the 'SARFAESI Act, 2002' on 5th....

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....titions, where no notice under Rule 26 of the Companies (Court) Rules was served, were to be  Company Appeal (AT) (Insolvency) No. 465 of 2019 transferred to the NCLT and treated as petitions under the Code. However, on a working of the Code, the Government realized that parallel proceedings in the High Courts as well as before the adjudicating authority in the Code would stultify the objective sought to be achieved by the Code, which is to resuscitate the corporate debtors who are in the red. In accordance with this objective, the Rules kept being amended, until finally Section 434 was itself substituted in 2018, in which a proviso was added by which even in winding up petitions where notice has been served and which are pending in th....