TaxTMI 
TaxTMI 
2019 (4) TMI 1853
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....te Debtor committed default in paying financial debt of Rs. 1,07,88,536/-(Rupees One Crore Seven Lakh Eighty Eight Thousand Five Hundred and Thirty Six Only). 2. The following facts are not in dispute:- 2.1 The Financial Creditor granted cash credit facility of Rs. 1,00,00,000/- (Rupees One Crore Only) to the Corporate Debtor vide sanction letted, dated 05.02.2012. The Corporate Debtor executed agreement of hypothecation of Book Debt, dated 15.12.2012. They avail cash credit from time-to-time. 2.2 According to the Financial Creditor, the Corporate Debtor committed default in paying financial debt in month of May, 2012 itself. Hence, on 24.12.2014, the Bank issued notice to the Corporate Debtor under section 13(12) Securitisation and Reco....
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....led under the law because there is no elected Board of Directors and Special Officer is appointed. According to the Corporate Debtor, the Special Officer is not authorised to file such proceeding. For this reason, application is not maintainble. Hon'ble High Court already ceased the matter and prima facie held that the Co-Operative Bank cannot file any proceeding under SARFAESI Act. Same principle is applicable here in this case. For all these reasons, the case may not be maintainable. 5. I heard ld. Pr. CS Nupur Choudhuri for the Petitioner/Financial Creditor and ld. Counsel Mr. Shambhu Nath Ray for the Corporate Debtor. ld. Pr. CS appearing for the Financial Creditor submitted that it has been held in number of orders passed by this ....
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....t the Corporate Debtor and whether the Corporate Debtor committed 'default' in paying financial debt (Ref. Innoventive Industries Ltd. v. ICICI Bank [2017] 142 SCL (NCL - AT). 8. In this case, ld. Counsel for the Corporate Debtor submitted that the Co-operative Bank cannot be financial institution and this issue is pending before Hon'ble High Court. I have gone through the pleadings of Writ Petition No. 33799 and order passed by the Hon'ble High Court. It appears that point for consideration before Hon'ble High Court is whether the Respondent being Co-operative Bank can initiate proceeding under SARFAESI Act, 2002. I am not dealing with that issue at all in this proceeding. Here, in this case, I have to see whether the ....
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....nted to look after day-to-day affairs and business of the Bank. In my considered opinion it includes to initiate proceeding under Insolvency and Bankruptcy Code in respect of the default of loan amount due against the Corporate Debtor. Special Officer filed this application under section 7 of Insolvency & Bankruptcy Code, 2016, to start Corporate Insolvency Resolution Process against the Corporate Debtor as the Corporate Debtor consistently committed default in paying debt. I hold that Special Officer is authorised to file this proceeding. 11. The Financial Creditor proved that there is 'financial debt' due against the Corporate Debtor and the Corporate Debtor committed 'default' in paying financial debt. 12. The Financial....
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....ferring, 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 (54 of 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. (v) The supply of essential goods or services to the corporate debtor as maybe specified shall not be terminated, suspended, or interrupted during moratorium period. (vi) The provisions of ....