TaxTMI 
TaxTMI 
2020 (9) TMI 895
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...., 2016 R/w Rule 4 of the I&B (AAA) Rules, 2016, by inter alia seeking to initiate the Corporate Insolvency Resolution Process (CIRP) in respect of Bhoruka Power Corporation Limited (hereinafter referred to as 'Respondent/Corporate Debtor') on the ground that the Respondent has committed a default of Rs. 2,59,47,000/- (Rupees Two Crore Fifty Nine Lakh Forty Seven Thousand Only) as on 17.11.2019, which includes interest of Rs. 59,47,000/- (Rupees Fifty Nine Lakh Forty Seven Thousand only) calculated @16% p.a. on principal amount of Rs. 2,00,00,000/- (Rupees Two Crore only). 2. It is submitted by the Petitioner that on request of the Respondent, the Petitioner extended financial assistance by way of Inter Corporate Deposit No. 1 of ....
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....d. However, the Counsel for the Respondent submits that the major secured creditor, L & T Finance has disbursed monies to Trust and Retention Account with the TRA Bank so as to enable the Respondent to repay the debt amounts of the Petitioner as well as other Creditors. Further, the Counsel for the Respondent submits that the Respondent has also received payments from the State DISCOMS towards the sale of energy. 6. The Counsel for the Respondent submits that the Respondent is a going concern and having received its dues from State DISCOM and assistance from L & T Finance Limited, it is in a position to repay and settle the amounts as agreed between the parties. Copy of the Escrow Agent Agreement entered by the Respondent with L & T Fina....
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....and only requires some more time to settle the debt. 11. It has already settled debts worth Rs. 36,81,38,388/- to several creditors who have approached this Tribunal. Since the Respondent is in the business of generating and selling power, its liabilities are paid out of its periodical receipts. 12. It is also relevant to note that the Hon'ble Supreme Court in the case of Mobilox Innovations Private Limited v. Kirusa Software Private Limited 2018 (1) SCC 353 has inter alia held that the I & B Code, 2016 is not intended to be a substitute to a recovery forum and cannot be used to jeopardise the financial health of an otherwise solvent company by pushing it into insolvency. It is also pertinent to mention that the Hon'ble Suprem....
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....her than be pushed into CIRP, else in the present scenario they may end up in liquidation and lose value further, which is the not objective of the IBC or other enactments. Steps have also been taken to ensure availability of more funds in the hands of businesses so that they can cope with the present economic scenario and restart their business. 14. In light of the above grim economic scenario and the facts of the instant case as brought on record and discussed above, especially that it has already received funds to be utilised for repaying its debts, we are of the considered view that the Respondent's plea that it be given some more time to repay the debt needs to be accepted, and the Respondent/Corporate Debtor be directed to sett....