TaxTMI 
TaxTMI 
2020 (2) TMI 1129
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.... i. On 06.04.2013 Rs. 20,00,000/- ii. On 10.05.2013 Rs. 10,00,000/- iii. On 16.09.2013 Rs. 15,00,000/- Total of Rs. 45,00,000/- (Rupees forty-five lakh only) as principal as on 28.02.2019 along with Rate of interest @ 18% has been mentioned in the requisite Form. The total amount of default thus calculated is stated to be 54,45,370/- as on 22.10.2016. 3. The Corporate Debtor is a Private company limited by shares and incorporated on 09.11.2009 under the Companies Act, 1956, with the Registrar of Companies, Maharashtra, Mumbai. Its Corporate Identity Number (CIN) is U74999MH2009PLC196937. Its registered office is at 13, Udyog Bhavan, Sonawala Lane, Goregaon (East), Mumbai, MH - 400063. Therefore, this Bench has jurisdiction to deal with this petition. 4. Submission made by the Financial Creditor:- 4.1 The Financial Creditor had on 06.04.2013, 10.05.2013 and 16.09.2013 in tranches of 20,00,000/-, 10,00,000/-, and 15,00,000/- respectively extended Loan totalling Rs. 45,00,000/- to the Corporate Debtor. Therefore, on the date of default i.e. on 22.10.2016 the total amount in default was Rs. 54,45,370/- including rate of interest @18% per annum. ....
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....s of the Respondent. Submissions by the Financial Creditor: 7. The Financial Creditor rebuts the argument of the Corporate Debtor and mentions that the present petition is tenable and maintainable in view of the provisions of the Insolvency and Bankruptcy Code. The Petitioner advanced unsecured loan of Rs. 45 Lakhs to respondent Company, bearing interest at the agreed rate of 18% per annum and therefore the Petitioner is a Financial Creditor of the Corporate Debtor. The Corporate Debtor has also deducted TDS, which itself suggest that the Corporate Debtor has borrowed the money from the Financial Creditor. Therefore, the said loan amount bearing interest is legal borrowing in the eyes of law. The Corporate Debtor failed and defaulted to make payment of interest after May, 2016 and repayment of principal amount and interest thereon falls within the definition of section 3(11) of the insolvency and bankruptcy code and section 5(8) of the code and therefore the petitioner has rightly invoked the provision under section 7 of the IBC Code. Reliance has been placed on Innoventive Industries Ltd. v. ICICI Bank Ltd. [2017] 84 taxmann.com 320/143 SCL 625 (SC) wherein it was held that:....
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....ancial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the financial creditor to satisfy itself that a default has occurred. It is of no matter that the debt is disputed so long as the debt is "due" i.e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date. It is only when this is proved to the satisfaction of the adjudicating authority that the adjudicating authority may reject an application and not otherwise." 8. The Financial Creditor mentions that in the past the Corporate Debtor has made payment of the interest during the financial year ending on 31.03.2014. The respondent Company had paid a sum of Rs. 6,61,520/- towards interest at the rate of 18% per annum. Similarly for year 2014-15 this was Rs. 7,29,000/- (Interest 8,10,000/- less TDS Rs. 81,000/-). In the year 2015-16 an amount of Rs. 8,12,220/- as interest was paid after deducting TDS. Further, the Financial Creditor submits that on 02.06.2016 the Corporate Debtor paid interest of Rs. 1,35,370/- for only two months i.e. April, 2016 and May, 2016. Therefore total outstanding amount as....
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....tion No.IBBI/IPA-001/IP-P00641/2017-2018/11090, as the Interim Resolution Professional of the Corporate Debtor. He has filed his written communication in Form 2 as required under rule 9(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 along with a copy of his Certificate of Registration. 13. The application made by the Financial Creditor is complete in all respects as required by law. It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is in excess of minimum amount of one lakh rupees stipulated under section 4(1) of the IBC. Therefore, the default stands established and there is no reason to deny the admission of the Petition. In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor. 14. The petition bearing CP (IB) 1602/MB/C-II/2017 filed by Narottambhai Swomabhai Patel, the Financial Creditor, under section 7 of the IBC read with rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against Wow Solutions & Systems Private L....