TaxTMI 
TaxTMI 
TaxTMI 
2020 (10) TMI 536
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....tion 7 of The Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "the Code") read with Rule 4 of The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as "the Rules") seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code. 2. That the applicant/financial creditor is a company incorporated on 27.10.1994 having identification No. U74899DL1994PLC062407 having its registered office at New Delhi and having one of its branch at C.G. Road, Ahmedabad inter alia engaged in the business of providing various types of financial facilities including business loans, personal loans, consumer loans, loan against property, term loan etc. and it is a non-banking finance....
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....nd neglected to pay the pending instalments and thereby committed breach of the loan agreement and defaulted the instalments due and payable on 05.09.2018, 05.10.2018, 05.12.2018 to 05.06.2019. Therefore, the petitioner issued legal notices dated 20.02.2019 and 30.04.2019 and called upon the respondent to make payment of the outstanding amount due but the respondent neither made any payment nor even bothered to give any reply to the notices. In these circumstances, the financial creditor was constrained to recall the loan facilities. Since the corporate debtor failed to pay the overdue instalments, the petitioner company has the right to foreclose the loan account and as per the foreclosure statement an amount of Rs. 38,25,124/- (Rupees thi....
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....of the corporate debtor in view of admitting the debt, but, the corporate debtor has failed to file affidavit. However, during the course of hearing, the learned lawyer appearing on behalf of the corporate debtor admitted the debt on receiving instructions from the corporate debtor. 9. On perusal of the records it is found that the letter of authority dated 06.08.2019 issued by Legal head of the applicant company authorising Mr. Kaushik Harjani, is proper and valid. 10. In view of the above discussions, the Adjudicating Authority is of the considered view that there is a debt due to "financial creditor" and there is default on the part of the corporate debtor. In view of the judgement of the Hon'ble Supreme Court in "Innoventive Indus....
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....nal debt under Section 5 (21) means a claim in respect of provision of goods or services. 28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor. It need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under Sub-Section (1) in such form and manner as is prescribed, which takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under Rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed....
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....ncial creditor and corporate debtor within seven days of admission or rejection of such application, as the case may be. 11. It is also held in Mobilox Innovations (P) Ltd. vs. Kirusa Software (P) Ltd. (2018) 1 SCC 353 as under: - "38.....in the case of a corporate debtor who commits a default of financial debt, the adjudicating authority has merely to see the records of the information utility or other evidences produced by the financial creditor to satisfy itself that a default has occurred. It is of no matter that the debt is disputed so long as the debt is "due", i. e. payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date. It is only when this is proved to the satisfactio....
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....oint Mr. Navin Khandelwal, 206, Navneet Plaza, 5/2, Old Palasia, Indore, Madhya Pradesh 452 018 ([email protected]) having registration No. IBBI/IPA-001/IP-P00703/2017-2018/11301 to act as an interim resolution professional under Section 13(1)(c) of the Code. Form 2 of the proposed interim resolution professional has been annexed and placed at page No. 26-28 of the application where declaration is made that no disciplinary proceeding is pending against him with the Board or Indian Institute of Insolvency Professionals of ICAI. 17. In the aforesaid background and as also discussed above, the application under Section 7 (2) of the IB Code is complete in all respects and there is debt due to the "financial Creditor" and there is default on t....