TaxTMI 
TaxTMI 
2020 (4) TMI 206
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....dia,the Financial Creditor through its Authorised Representative Mr. Dilip Kumar Pathak, Chief Manager & Case Lead Officer, authorized vide authority letter dated 29th July, 2019, seeking initiation of Corporate Insolvency Resolution Process against M/s. Sri Bir Ispat Private Limited,a Corporate entity, having its registered office at Jharkhand, hereinafter referred to as the "Corporate Debtor" 2. It is submitted in the application that on the request of the Corporate Debtor, which is engaged in the trading of Iron and steel materials mainly ingot, TMT bar, rod wire and other allied products of Iron. The Financial Creditor vide its letter dated 2nd August, 2011 for grant of term loan and other credit facilities for Rs. 3.59 crore. The Fi....
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.... further submitted that a demand notice under section 13(2) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, was issued to the Financial Creditor on 23rd June, 2015 and a reply was received from the Corporate Debtor vide its letter dated 1st September, 2015 followed by a letter by the Financial Creditor dated 18th September, 2015 to the Corporate Debtor. Possession notice under section 13(4) was also served on 1st December, 2015 and an application under section 14 of the SRFAESI Act, 2002 was filed. Proceedings before the Debts Recovery Tribunal (DRT) was initiated on 20th July, 2015 being O.A. No. 371 of 2015 and a Recovery Certificate was issued on 17th May, 2017 for a sum....
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....Debtor in the account of Harshit Power & Ispat Pvt. Ltd. (HP&IPL) to reduce the dues of the Harshit Power & Ispat Pvt. Ltd. and the adjustment was done without any intimation and consent of the Corporate Debtor. 11. It is submitted that on 5th March, 2014, the Corporate Debtor wrote a letter to the Financial Creditor informing that a mortgage loan to the tune of Rs. 3.60 crore was sanctioned by the Financial Creditor asking the Corporate Debtor to pledge all the available lands and the same mortgage loan of Rs. 3.59 crore was instantly adjusted to the NPA account of HP&IPL and that in spite of the receipt of the said letter, the Applicant did not send any reply to the Corporate Debtor. 12. It is stated that by adjusting the said loan ....
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....ithout any delay and the present petition was filed on 2nd August, 2019. 15. The ld. Counsel for the Corporate Debtor, however, submitted very brief argument and very candidly admitted the averments made in the application and did not oppose the contents of the petition and also the arguments of the Financial Creditor. In view of the fact that the claim of the Financial Applicant have already been crystallised by DRT in its proceedings and the Recovery Certificate issued as aforesaid, followed by admission of the claim by the ld. Counsel appearing on behalf of the Corporate Debtor, we have no hesitation in admitting the petition and initiating Corporate Insolvency Resolution Process against the Corporate Debtor. We, therefore, pass the f....
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.... (iv) The supply of essential goods or services to the corporate debtor as maybe specified shall not be terminated, suspended, or interrupted during moratorium period. (v) The provisions of sub-section (1) shall not apply to such transactions as maybe notified by the Central Government in consultation with any financial sector regulator. (vi) The order of moratorium shall have effect from the date of admission till the completion of the corporate insolvency resolution process. (vii) Provided that where at any time during the Corporate Insolvency Resolution Process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of the ....