TaxTMI 
TaxTMI 
2020 (1) TMI 470
X X X X Extracts X X X X
X X X X Extracts X X X X
....t company M/s. Delhi Baroda Road Carrier Private Limited (CIN U74899 DL1995 PTC 067016) against whom initiation of Corporate Insolvency Resolution Process has been prayed for, was incorporated on 31.03.1995 under the provisions of the Companies Act, 1956. The registered office of the respondent corporate debtor is situated at 23, Transport Centre, New Sabzi Mandi, Azadpur, Delhi - 110033. Since the registered office of the respondent corporate debtor is in Delhi, this Tribunal having territorial jurisdiction over the place 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. Mr. Puneet Singh, Deputy Manager 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. 4. It is submitted in the application that the applicant financial creditor had sanctioned 134 loans on various dates in the year 2014 for the purpose of purchasing of vehic....
X X X X Extracts X X X X
X X X X Extracts X X X X
...."Financial Creditor" / "Financial Creditors" can file an application. As per Section 7(1) of the Code, an application could be maintained by a Financial Creditor either by itself or jointly with other Financial Creditors. 12. One of the objections raised by the respondent is that the applicant is not a 'financial creditor', nor the debts claimed in the application come within the purview of "financial debt" as defined under the Code. 13. The expressions "Financial Creditor" and "Financial debt" have been defined in Section 5 (7) and 5 (8) of the Code and precisely "Financial debt" is a debt along with interest, if any, which is disbursed against the consideration for time value of money. 14. In the present case applicant had sanctioned and disbursed the loan which are recoverable with applicable interest by entering in to loan agreements with the respondent borrower. The corporate debtor had undertaken the liability to repay the loan along with the agreed interest. The loan/financial facility was clearly disbursed against the consideration for time value of money with a clear commercial effect of borrowing. Moreover, the debt claimed in the present application base....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iance thereof the applicant has proposed the name of Mr. Rocky Ravinder Gupta, for appointment as Interim Resolution Professional having registration number IBBI/IPA-002/IP-N00666/2018-19/12022 resident of 4582/52, Arya Samaj Road, Karol Bagh, New Delhi - 110005 with email - id [email protected]. Mr. Rocky Ravinder Gupta has agreed to accept the appointment as the interim resolution professional and has signed a communication dated 07.12.2018 in Form 2 in terms of Rule 9(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. There is a declaration made by him that no disciplinary proceedings are pending against him in Insolvency and Bankruptcy Board of India or elsewhere. In addition, further necessary disclosures have been made by Mr. Rocky Ravinder Gupta as per the requirement of the IBBI Regulations. Accordingly, it is seen that the requirement of Section 7 (3) (b) of the Code has also been satisfied. 21. It is thus seen that the requirement of sub-section 5 (a) of Section 7 of the code stands satisfied as default has occurred; the present application filed under Section 7 is complete and as no disciplinary proceeding against the proposed....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Code cannot be rejected on the ground that the claim has been disputed. It is no matter that the debt is disputed so long as the debt is due and payable. 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 who is at fault. Adjudicating Authority do not decide a money claim or suit, which can only be decided by the court of competent jurisdiction. 29. It is reiterated that the Adjudicating Authority is only to ascertain the existence of a default, which has to be more than the threshold limit of one lac. 30. The corporate debtor is entitled to point out to the Adjudicating Authority that a default has not occurred; in the sense that a debt, which may also include a disputed claim is not due i.e. it is not payable in law or in fact. Respondent Corporate Debtor has miserably failed to raise any good defence against the petition and also has failed to place its updated financial statement to show that no financial debt is due. There is no proof to show the re-payment of the entire awarded amount to the financial creditor. Needless to say, that the claim is based ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) (a), (b), (c) & (d) of the Code. Thus, the following prohibitions are imposed: "(a) the institution of suits or continuation of pending suits 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; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor." 37. It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Central Government or the supply of the essential goods or services to the Corporate Debtor as may be specified, are not to be terminated or suspended or interrupted during the morato....