TaxTMI 
TaxTMI 
2019 (9) TMI 1388
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....oan of Rs. 12.26 crores to the corporate debtor. The corporate debtor executed demand promissory notes and other documents, having availed the loan. The loan was not repaid as agreed by the corporate debtor. Hence, on March 31, 2014 the loan account was declared to be a NPA by the United Bank of India. 4. On March 29, 2014 the bank assigned the debt to the financial creditor by way of a deed of assignment. It was within the knowledge of the corporate debtor. The financial creditor claimed the recovery of assigned debt from the corporate debtor but the corporate debtor did not pay. Hence, the proceeding for recovery of loan which was already initiated by United Bank of India bearing O. A. No. 530 of 2015. It is pending for adjudication. The financial creditor filed this application to start the CIRP of the corporate debtor. 5. The financial creditor suggested name of one Mr. Anup Kumar Singh, having registration No. IBBI/IPA-001/IP-P00153/2-17-2018/10322 and e- mail id [email protected] for appointment as the IRP. 6. The corporate debtor is served with the notice of this application. One Mr. Gurupada Sinha, one of the directors of the corporate debtor appeared....
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....s filed well within time. The corporate debtor may be admitted in CIRP. 12. On the basis of materials on record and the submissions made at the bar, the following points of controversy arises for our determination. We record our findings thereon as follows : (i) Whether the applicant can be said to be financial creditor on the basis of the deed of assignment dated March 19, 2017 ? (ii) Whether the debt is time-barred ? 13. We deal with the first objection raised by the corporate debtor. It is submitted that the applicant cannot be financial creditor within the meaning of section 5(7) of the IBC as the deed of assignment is legal and valid. Section 5(7) of the IBC defines the financial creditor that, "'financial creditor' means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to" ; The law requires that there must be legally assignment of debt. Hereinbefore us the deed of assignment is produced as annexure P3. We find that it is prepared on stamp paper of Rs. 100. It has been registered duly before the Registrar of Assurance, Kolkata. Prima facie, we hold that it is lega....
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....e on paragraph 7 of B. K. Educational Ser vices P. Ltd. v. Parag Gupta and Associates [2019] 212 Comp Cas 1 (SC), suffice it to say that the Report of the Insolvency Law Committee itself stated that the intent of the Code could not have been to give a new lease of life to debts which are already time-barred. This being the case, we fail to see how this paragraph could possibly help the case of the respondents. Further, it is not for us to interpret, commercially or otherwise, articles of the Limitation Act when it is clear that a particular article gets attracted. It is well-settled that there is no equity about limitation-judgments have stated that often time periods provided by the Limitation Act can be arbitrary in nature." 15. In short, it was expected from the financial creditor and earlier to that by the bank to file proceeding against the corporate debtor within three years from the date on which the account of the corporate debtor became a NPA. In this case the account declared to be a NPA on March 31, 2014 proceeding is filed on October 31, 2018. 16. However, there is one more dimension as far as case in hand is concerned. The financial creditor and even corporate....
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....inuation 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 (54 of 2002) ; (d) The recovery of any property by an owner or lessor where such property is occupied by or in possession of the corporate debtor. (iv) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during the moratorium period. (v) The provisions of sub-section (1) shall not apply to such trans actions as may be notified by the Central Government in consultation with any financial sector regulator. (vi) The order of moratorium....