TaxTMI 
TaxTMI 
2020 (9) TMI 1114
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....16, by inter alia seeking to initiate the Corporate Insolvency Resolution Process (CIRP) in respect of Bhoruka Power Corporation Ltd. (hereinafter referred to as 'Respondent/ Corporate Debtor') on the ground that the Corporate Debtor has committed a default of Rs. 99,41,972/- (Rupees Ninety Nine Lakh Forty One Thousand Nine Hundred and Seventy Two only) as on 20.11.2019, which includes interest of Rs. 14,41,972/- calculated @16% p.a. on principal amount of Rs. 85,00,000/-. 2. It is submitted by the Petitioner that loan vide an Inter Corporate Deposit (ICD) of Rs. 1,00,00,000/- (Rupees One Crore only) was granted to the Respondent vide Bank Transfer on 11.05.2017. The Respondent has confirmed the receipt of the Loan and executed a D....
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.... over 24 Financial and Operational Creditors who have approached this Bench. 8. The Respondent has sought for some additional time to settle the dues of the Petitioner. 9. Heard Mr. Saji P. John, learned Counsel for the Petitioner and Mr. Shashi Kiran Shetty, learned Senior Counsel for the Respondent through Video Conference. We have carefully perused the pleadings of both the parties and extant provisions of the Code and the Rules made thereunder. 10. The Corporate Debtor, has admitted its liability to repay the debt amount and is willing to pay the same. However, it sought for additional time for clearing the financial dues of the Petitioner. 11. On perusal of the records, there is no doubt that there is an admitted debt and a default....
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....ona virus pandemic necessitating a nationwide lockdown, cannot be ignored. Major decisions have been taken to protect Industry from its effects, to inject economic stimulus and to revive the economy. More specifically, on 24.03.2020 the Legislature increased the minimum threshold of default from Rs. 1 Lakh to Rs. 1 Crore so that the Code is not used merely for recovery of debt. Modifications and suspension of various provisions of the Code have been initiated so that Companies facing financial stress due to the pandemic can be supported rather 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 e....