AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 149
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....tor has proposed the name of Resolution Professional, Mr. Umesh Garg, with the address D-15, Second Floor, Okhla Industrial Area, Phase-1, New Delhi and e-mail id [email protected]. His registration number is IBBI/IPA-001/IP-P00135/2017-18/10277. He has filed his written communication which satisfies the requirement of Rule 9(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 along with the certificate of registration. 4. The details of financial debt advanced by the petitioner-Financial Creditor have been set out in Part-IV of the proforma. The total amount disbursed on different dates from 2015 to 2017 which were in the form of Term Loan facility is claimed to be INR 20,77,51,805/-. The amount claimed to be in default and the details of default have been given in sub para 2 of Part-IV and the same reads as under: 2. AMOUNT CLAIMED TO BE IN DEFAULT AND THE DATE ON WHICH DEFAULT OCCURED Sl. No. Principal O/s Accrued Interest Other Misc. Charges 1 20,77,51,805 75964425 608495 Total outstanding a....
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..... (ii) The Respondent was serving the interest component on time but high interest rate being charged by the petitioner and adverse market conditions could not reap the expected results which led to the delay in making the principal amount as well as serving the high interest cost. (iii) The Respondent has always been diligent and bona fide requested for a fair, workable proposal for a structured repayment plan. (iv) The petitioner has, till date, not disclosed or provided the legally mandated documents and information like the complete statement of account, the rates of interest debited from time-to-time, rates of penal interest etc. However, the petitioner is by law, required to give the copies of all supporting alleged documents including vouchers, cheques, drafts, registers, ledgers and all such other documents including documents relating to the sanction of the loan and credit facilities, and circulars with regard to the rate of interest. (v) The officials of the petitioner, at the time of granting the said loan and credit facilities, had obtained the signatures of Respondent on a series of papers, unfilled printed forms, letter heads signed in blank and without even g....
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....e existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law admissible, but not further or otherwise." 17. A perusal of the aforesaid provision would show that a certified copy of entry in a banker's books is to be regarded as prima facie evidence in all legal proceedings with regard to the existence of such entry. It must be admitted as sufficient evidence of the matters, transactions and accounts therein recorded in every case. 18. As regards the allegation of charging excessive rate of interest, the Financial Creditor has stated that the interest has been charged in accordance with the terms of sanction letter from time-to-time. It is submitted that the amount claimed in Part-IV of the application is based on the statement of Accounts maintained by the Bank in its ordinary course of business and in accordance with the banking systems. In any case no serious dispute with regard to the amount payable could legally be raised before us. 19. One of the objections of the Respondent is that the officials of the petitioner, at the tim....
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....erefore, the objection of the Respondent that the Financial Creditor has wrongly declared the account as NPA, cannot be a ground to reject the application preferred by Financial Creditor under section 7 of the Code, there being default in payment of financial debt. 21. The Tribunal is not an adjudicating authority to ascertain the quantum of amount of default or to pass decree as to how much amount is actually due to the Petitioner-Financial Creditor. Adjudicating Authority is not to decide a money claim or suit. The Code requires the adjudicating authority to only ascertain and record satisfaction in a summary adjudication as to the occurrence of default before admitting the petition. Besides in a petition under section 7 of the Code. 22. We further find that all requirements of section 7 for the initiation of Corporate Insolvency Resolution Process by a Financial Creditor stand fulfilled. In that regard, it has been submitted that the petition as prescribed by rule 4 (1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 read with section 7 (2) of IBC is complete in all respects. He has further submitted that the details of the default along with....
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.... provisions of section 14 (1) (a), (b), (c) & (d) and thus the following prohibitions are imposed which must be followed by all and sundry: "(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." 28. It is made clear that the provisions of moratorium shall not apply to (a) such transactions which might be notified by the Central Government in consultation with any financial regulator; (b) a surety in a contract of guarantor to a Corporate Debtor. Additionally, the....