TaxTMI 
TaxTMI 
2020 (10) TMI 168
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..../Financial Creditor') U/s 7 of the IBC, 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. 4,06,70,137/- (Rupees Four Crore Six Lakh Seventy Thousand One Hundred and Thirty Seven Only) as on 15.10.2019, which includes interest of Rs. 56,70,137/- (Rupees Fifty Six Lakh Seventy Thousand One Hundred and Thirty Seven only) calculated @16% p.a. on principal amount of Rs. 3,50,00,000/- (Rupees Three Crore Fifty Lakh only). 2. It is submitted by the Petitioner that on request of the Re....
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....vely. 5. The Counsel for the Respondent sought time for settlement stating that the Company is a leading renewable energy developer in Karnataka, employing over 200 employees across its 21 power generation projects and having total revenue of Rs. 177.50 Crore. 6. It is admitted by the Respondent that the ICD has not been repaid within the stipulated period. 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 to....
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....ebt and a default as per the agreed terms between the two parties. On the other hand the Petitioner admits that the present loan was renewed as the Respondent had been repaying the earlier debts. Thus, there is a running account between the two and the Respondent has given an undertaking that it has made arrangements for paying the debt and only requires some more time to settle the debt. 12. 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. 13. It is also relevant to note that the Hon'ble Supreme Court in the case of Mobilox Innovations Private Li....
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....cally, 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 ensure availability of more funds in the hands of businesses so that they can cope with the present economic scenario and restart their business. 15. In light of the above grim economic scenario and the facts of ....