2020 (9) TMI 398

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....rity) Rules, 2016, by inter alia seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/s.Blue Whale Machinery Technologies Pvt. Ltd., on the ground that it has committed default for a total amount of Rs. 18,01,59,144/- (Rupees Eighteen Crore One Lakh Fifty Nine Thousand One Hundred and Forty Four Only) which includes Financial Creditors (Rs. 11,23,40,812/-) and Operational Creditors (Rs. 6,78,18,332/-). 2. Brief facts of the case, as mentioned in the Company Petition, are as follows: (1) M/s. Blue Whale Machinery Technologies Pvt. Ltd. (herein after referred to as 'Company') was incorporated on 19.11.2007 as a Private Company Limited by shares with the ROC, Karnataka vide CIN: U29128KA2007PTC....

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....f Financial Creditors and Operational Creditors to whom the Company owes money, the details of the Creditors and the amount sanctioned as well as the amount in default are as follows:     SI. No. Name, Address of Creditors Date of Occurrence of debt Amount of Debt or Service Provided Amount in Default Security against loan     Financial Creditors               1. Karur Vysya Bank Ltd.(Cash Credit) 230/2, 15th Cross, Sampige Road, Malleshwaram, Bangalore- 560003 12/10/2018 on 12/10/2018 cash credits limits were enhanced 50,000,000 65,801,708 Refer Statement of affairs     2. UCO Bank Corporate Home ....

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....and Advances -     3. Inventories 46,145,532     4. Trade Receivables 52,412,223     5. Cash and Cash Equivalents 198,914     6. Other Current Assets 2,314,999     7. Short Terms Loans and Advances 81,103,471     Total Assets   21,28,25,081     List of Liabilities as on 10th February 2020         1. Share Capital 15,000,000     2. Reserves & Surplus 16,467,134     3. Long Term Borrowings 5,31,83,595     4. Other Current Liabilities 12,81,74,350   &nbs....

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.... complete and no disciplinary proceedings are pending against the proposed Resolution Professional. 5. It is a settled position of law that once debt and default is proved to the satisfaction of the Adjudicating Authority, the case has to be admitted to initiate CIRP, and appoint IRP etc. We are satisfied with the reasons cited by the Petitioner to initiate CIRP. The instant Company Petition is filed in accordance with law. 6. In M/s. Unigreen Global Private Limited \/s. Punjab National Bank and Ors., Comp. App. (AT) (Insolvency) No. 81/2017 decided by the Hon'ble NCLAT in its order dated 01.12.2017, it was held that the law laid down in Innoventive Industries Ltd. equally applicable to Section 10 of the Code as it was to section ....

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....reflects at Note 3 Long Term Borrowings against hypothecated assets amounting to Rs. 7,29,39,446.18/- and Current Liabilities of Rs. 4,06,74,381.94/-. For this period it had a profit of Rs. 69,27,898.90/-. However, the Provisional Balance Sheet filed for the period 01.04.2019 to 10.02.2020 shows that the Long Term and Current Liabilities stood at Rs. 5,31,83,595.58/- and Rs. 12,81,74,350.64/- respectively, and the Profit & Loss A/c for this period shows a loss of Rs. 1,31,73,013.16/-. As per the Statement of Affairs as on 10.02.2020 filed by the Petitioner shows that while its Total Liabilities were Rs. 14,44,21,277/-, the Estimated Realisable value of its Assets came to only Rs. 6,40,13,721/. Thus its liabilities far exceed its Assets. It ....

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....the IBBI from time to time; 2) The following moratorium is declared prohibiting all of the following, namely: a) the institution of suits or continuation of pending suits or proceedings against the Petitioner/Corporate Applicant 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 ....