TaxTMI 
TaxTMI 
2020 (9) TMI 942
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.... 1) The initial Company Petition bearing C.P.(IB) No. 181/BB/2018 was filed by M/s. Karnataka State Financial Corporation under Section 7 of the IBC, 2016, R/w Rule 4 of I & B (AAA) Rules, 2016 for initiating CIRP process in respect of the Corporate Debtor namely M/s. Innovative Studios Private Limited, and it was admitted by the Adjudicating Authority on 11.04.2019 by appointing Mr. Balady Shekar Shetty as the IRP and imposing moratorium, etc. 2) It is stated the M/s. Rajesh Exports Limited (herein after referred to as Applicant) is a public limited Company consisting of thousands of shareholders and its shares are listed on the Bombay Stock exchange and National Stock Exchange since 1995. The Company is the largest exporter of gold jewellery and winner of several national and international awards for its sterling export performance and along with export business; it also furnishes inter-corporate deposits (ICD) to other companies. Giving ICD is the regular business of the Applicant M/s. Rajesh Exports Limited. 3) It is stated that the Respondent No. 2/Corporate Debtor approached the Applicant seeking ICD's for expanding the business and after derailed discus....
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....m was shown only Rs. 7,13,41,467/- instead of Rs. 51, 12, 08,556/-and the voting rights as 19.45%. After detailed deliberations, the Applicant requested the COC to consider its claim in its entirety, as the claim is secured by the registered Mortgage Deeds dated 09.03.2009, 30.04.2009 and 14.05.2009 and by several other documents. Further as per the terms of the mortgage deed and the ICD agreement, the Applicant/Financial Creditor had requested the Respondent No. 1 to transfer the secured schedule properties under the mortgage deed in its favour. However, the Respondent No. 1 has failed to consider the request of the Applicant/Financial Creditor to transfer the land in its favour. 6) It is stated the Respondent No. 1 has exceeded his jurisdiction and has completely ignored the fact that this transaction is not covered under the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 and Karnataka Money Lenders Act, 1961. It is further stated that the Respondent No. 1 has classified the transaction between the Applicant/Financial Creditor and the Respondent No. 2 as unsecured as per Section 77(3) of the Companies Act, 2013. The classification of this Applicant/Finan....
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....t No. 2 only based upon the exclusive security furnished to the Applicant/Financial Creditor by the Respondent No. 2. The Respondent No. 1 is bound to recognise the collateral furnished and registered in favour of the Financial Creditor and exclusively allocate such collateralised property to the Financial Creditor failing which there would be no sanctity of the Transfer of property act and various laws and acts which protect and recognise the interest of a registered Mortgage done for the purpose of security. Hence the application. 3. The Respondent No. 1 (Liquidator) has filed the statement of objections dated 18.02.2020 by inter alia stating as follows: (1) The Company petition is admitted vide order dated 11.04.2019 and subsequently, the Adjudicating Authority passed an order dated 06.01.2020 by directing to liquidate the Corporate Debtor by appointing RP as Liquidator etc. The Applicant was required to submit its claim to the Liquidator in accordance with Section 38 of I&B Code 2016 r/w Regulation 16 of the Liquidation Process Regulations 2016. (2) It is stated that the Respondent as an IRP caused a public announcement in Financial Express (English Languag....
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....ter Reference No. IP/IS/2019-20/FC-01 dated 24.05.2019. The Respondent vide his communication referred above communicated to the Applicant and requested to substantiate his claim along with documentary evidences including the following: a. Certified copy of the statement/worksheet/grouping formula part of the schedule of Inter-corporate Deposit or/and Interest Accrued and not yet received in which the name of the Corporate debtor is clearly mentioned and duly signed by your auditors for all the year upto 2017-18 in which you have claimed as interest accrued and not received and for 2018-19 b. Certified copies of Leger Extracts for your claim amount as it gets reflected in your books of accounts from the date of lending until the date of claim duly certified by your auditors. c. Certificates from your Tax Auditors mentioning that the amount of interest in respect of the corporate Debtor has been included in the taxable income taxes in respect of such interest income included in the Income Tax return. d. Any decision of the Hon'ble High Court of Karnataka or the Hon'ble Supreme Court supporting your submission. (5) It is stated wit....