TaxTMI 
TaxTMI 
2020 (3) TMI 98
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....e Centre, C-10, G-Block, Bandra Kurla Complex, Bandra E, Mumbai 400 051, and branch at Reshamwala Market, Ring Road, Surat, Gujarat State. 3. During pendency of this application, Dena Bank is merged with Bank of Baroda vide Government of India Gazette Notification, dated 02.01.2019. Accordingly cause title of the instant application is amended vide order 03.05.2019. 4. The respondent/corporate debtor M/s. Gaurinandan Fashion Private Limited is a company incorporated under the Companies Act, 1956 on 04.05.2013, having identification No. U17120GJ2013PTC074874, having its registered office at Ring Road, Surat, Gujarat State. That, Authorised and paid-up capital is Rs. 6,00,000/-. 5. That, the applicant bank has submitted that through its Reshamwala Market Branch, Distt. Surat granted various financial credit facilities to the corporate debtor and disbursement was made as per the details given below: - (i) Cash Credit facility of Rs. 4,50,00,000/- (ii) Enhancement of cash credit limit of Rs. 4,50,00,000/- to Rs. 4,95,00,000/- 6. The applicant bank has claimed that the respondent is in default of Rs, 4,94,75,089/- plus uncharged Interest of Rs. 67,37,426.66 up to 31.07.2018, agg....
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....t of extension relating to deposit of title deeds, dated 23.12.2015 134-159 20 Certificate of Registrar of Companies, Gujarat 160 21 CIBIL report 161-168 22 Statement of account under Bankers' Books Evidence Act 169-454 23 Notice, dated 10.11.2017, Issued under section 13 (2) of the SARFAESI Act 458-463 24 Notice under section 13(4), dated 18.01.2018, under SARFAESI Act 464-466 25 O.A. No. 717 of 2018, filed before DRT-I. Ahmedabad 467-534 26 S.A. No. 71 of 2018, filed by the borrower 535-548 27 Affidavit in support of Insolvency application 549-562 28 Written communication by proposed IRP in Form 2 563-564 9. Director of the respondent company filed affidavit in reply inter alia raising the following objections: - (i) Form No. 1 filed by the applicant bank is not correctly filled up, hence, only on this ground alone the application is required to be rejected; (ii) Signatory of the petition is not the authorised person to file the present petition; (iii) The account of the respondent company was never become NPA and the classification of NPA done by the applicant bank is already under challenge before DRT-II, Ahmedabad; (iv) The applicant ba....
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....tor 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 person to whom a financial debt is owned and a financial debt is defined in section 5 (8) to mean a debt which is disbursed against consideration for the time value, of money. As opposed to this, an operational creditor means a person to whom an operational debt is owed and an operational debt under section 5 (21) means a claim in respect of provision of goods or services. 28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the Explanation to section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor. It need not be a debt owed to the applicant financial creditor. Under section 7 (2), an application is to be made under Sub-Section (1) in such form and manner as is prescribed, which takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under Rule 4, the application is made by a financial creditor in Form 1 accompanied ....
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....pplication and not otherwise......". 16. That, the application is found to be complete in all respect. Hence it does not warrant any rejection or dismissal. 17. That, the records available shows that the applicant bank had sanctioned cash credit limit and term loans to the respondent company, to be repaid within the stipulated period as per the terms and conditions agreed between the parties. That, the applicant bank had issued notice, dated 10.11.2017. Records available shows that the respondent has not cared to reply the notice issued by the applicant. 18. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the application is complete in all respect and the Corporate Debtor committed default in paying the financial debt to the Applicant and the respondent company has acknowledged the debt. 19. In the instant case, the documents produced by the Financial Creditor clearly establish the 'debt' and there is default on the part of the Corporate Debtor in payment of the 'financial debt'. 20. There is no dispute in the case that the petitioner is the financial creditor. The application is also furnished i....