TaxTMI 
TaxTMI 
2020 (3) TMI 22
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.... having central office at 762, Anna Salai, Madras - 2. 3. The respondent/corporate debtor M/s. Jason Dekor Private Limited is a company incorporated under the Companies Act, 1956 on 30.07.2003, having Identification No. U74994GJ2003PTC042695, having its registered office at Paldi, Ahmedabad, Gujarat State. That, Authorised share capital of the respondent company is Rs. 10,00,00,000/-and paid-up share capital is Rs. 3,50,00,000/-. 4. That, the applicant bank has submitted that through its Ashram Road Branch, Ahmedabad granted various financial credit facilities to the corporate debtor as per the details given below: Nature of facility Sanction limit (Rs. In crores) Sanction letter dated 07/08/2012 Renewed on 31.03.2015 Term loan (with sub limit of FLC/ILC 16.75 10.83 Cash credit limit 06.00 06.00 Letter of guarantee favouring customs Dept. 00.50 00.50 Letter of guarantee favouring MGVCL 00.40 00.40 TOTAL FUND BASED 23.65 17.73 5. It is stated that the corporate debtor is in total default of Rs. 23,45,71,390.59 (Rupees twenty-three crores forty-five lakhs seventy-one thousand three hundred ninety and paise fifty-nine only....
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.... Memorandum of deposit of title deeds dated 03.09.2012 152-159 25 Balance confirmation dated 02.04.2013 160 26 Balance confirmation dated 15.10.2013 162 27 Balance confirmation dated 05.06.2015 163 28 Balance confirmation dated 20.05.2015 164 29 Balance confirmation dated 31.03.2017 165 30 CIBIL report dated 22.03.2019 166-209 31 Statement of accounts under the Bankers' Books Evidence Act 210-282 32 Notice under section 13(2) of the SARFAESI Act dated 27.06.2016 283-288 33 Notice demanding possession dated 02.01.2017 289-290 34 Memo of O.A. No. 470/2017 dated 18.08.2017 filed before DRT, Ahmedabad 294-342 35 Securitisation appeal No. 89/2017 filed by borrower dated 17.05.2017 343-407 36 Commercial Suit No. 152/2017 filed by the borrower before Commercial Court, Ahmedabad dated 24.07.2017 408-420 37 Balance sheet of the corporate debtor for the year ended 2015-16 421-446 38 Balance sheet of the corporate debtor for the year 2016-17 447-473 39 Balance sheet of the corporate debtor for the year 2017-18 474-499 40 Affidavit in support of....
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....43 SCL 625, the Hon'ble Supreme Court while explaining sections 7 and 8 of the IB Code, observed and held as under:- '27. The scheme of the Code is to ensure that when a default takes place, in the sense that a 'debt' becomes due and is not paid, the insolvency resolution process begins. Default is defined in Section 3 (12) in very wide terms as meaning non-payment of a debt once it becomes due and payable, which includes non-payment of even part thereof or an instalment amount. For the meaning of "debt", we have to go to section 3 (11) which in turn tells us that a debt means a liability of obligation in respect of a "claim" and for the meaning of claim, we have to go back to Section 3 (6) which defines claim to mean a right to payment even if it is disputed. The Code gets triggered the moment default is of rupees one lakh or more (section 4). The corporate insolvency resolution process may be triggered by the corporate debtor itself or a financial creditor or operational creditor. A distinction is made by the Code between debts owed to financial creditors and operational creditors. A financial creditor has been defined under section 5(7) as a per....
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....ice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within seven days of admission or rejection of such application, as the case may be.' 12. It is also held in Mobilox Innovations (P.) Ltd. v. Kirusa Software (P.) Ltd. [2017] 144 SCL 37 (SC) as under:- "38 ...........in the case of a corporate debtor who commits a default of financial debt, the adjudicating authority has merely to see the records of the information utility or other evidences 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 then the adjudicating authority may reject an application and not otherwise ............". 13. The objection with regard to maintainability of the petition so raised by the respondent is not only vague but also not sustainable in absence of any cogent....
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....d interim resolution professional has been annexed and placed at Page No. 513 of the application where declaration is made that no disciplinary proceeding is pending against him with the Board or Indian Institute of Insolvency Professionals of ICAI. 19. In the aforesaid background and as also discussed above, the application under Section 7 (2) of the IB Code is complete in all respects and there is debt due to the "financial Creditor" and there is default on the part of the "corporate debtor". Hence, there is no alternative but to admit the application in absence of any infirmity. 20. In view of the above, the petitioner/financial creditor having fulfilled all the requirements of Section 7 of the Code, the instant petition deserves to be admitted. 21. The petition is, therefore, admitted and the moratorium is declared for prohibiting all of the following in terms of sub-section (1) of Section 14 of the Code:- (i) 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; (ii) transferring, en....