TaxTMI 
TaxTMI 
TaxTMI 
2020 (10) TMI 538
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....is evident that the Financial Creditor is a Bank having its Central Office at Mumbai. Part -II of the Application discloses the fact that the Corporate Debtor is a Private Limited Company having CIN: U17122TN2008PTC069973 which was incorporated on 25.11.2008 and having Nominal Share Capital and Paid - up Share Capital of Rs. 4,25,00,000/- and Rs. 3,25,00,000/- respectively and the Registered Office of the Corporate Debtor as per the Application is stated to be situated at No. 9/7B, Dindigul Main Road, Vilangudi, Madurai - 625018. Part - III of the Application discloses the fact that the Financial Creditor has proposed the name of one Mr. Swaminathan Prabhu as the Interim Resolution Professional. 3. From Part - IV of the Application, it can be seen that the Financial Creditor is claiming that a total sum of Rs. 28,43,33,566.87/- (Rupees Twenty Eight Crores Forty Three Lakhs, Thirty Three Thousand and Five Hundred and Sixty Six and Eighty Seven Paisa only) to be in default as on 30.09.2018 and the Corporate Debtor has failed to pay the same. It has also been stated that the account of the Corporate Debtor was classified as NPA on 31.07.2017. 4. Part - V of the Application discloses....
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....1.07.2017. 9. Thus, the Learned Counsel for the Financial Creditor has submitted that the Financial Creditor has granted various credit facilities to the Corporate Debtor on various dates and renewed the same from time to time and the Corporate Debtor has committed default in the repayment of the said loan. The details of the loans granted by the Financial Creditor and the Outstanding Balance are reproduced below; SI. No Nature Of account Amount Due as on 30.09.2018 1 Packaging Credit 19799818739 2 Duty Drawback 12092237.00 3 Cash Credit 60097941.14 4 Invoked Guarantee 11691262.00 5 TermLoan 2453939.34 Total 284333566.87 Under the circumstances, the Learned Counsel for the Financial Creditor submitted that the debt and default on the part of the Financial Creditor is proved and therefore prayed to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. 10. The Learned Counsel for the Corporate Debtor has filed their objections and submitted that the application filed by the Financial Creditor is not maintainable as the same has been filed fraudulently and with a malicious intent, other than the purpose of resolution and h....
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....rrelevant documents. 12. Similarly, the Counsel for the Corporate Debtor tried to point out all the flaws in the Application filed by the Financial Creditor. Further, it was alleged in the counter that the Financial Creditor has done corporate frauds in connivance with KPS Selvaraj and his wife Mrs. S. Indira Vijayalakshmi along with Axis Bank and completely destroyed the functioning of Lakshmi Subbaiaah Tex Pvt. Ltd. as they are not having any Debt to be paid to the Financial Creditor as the Selvaraj Tex Pvt. Ltd., the original borrower was fraudulently transferred without any financial assistance to Lakshmi Subbaiaah Tex. Pvt. Ltd. 13. Further, it was submitted by the Learned Counsel for the Corporate Debtor that the there is a pre-existing dispute with the Financial Creditor, as a subrogation suit was filed by the Corporate Debtor in their individual capacity in Learned Madurai District Court and also a Writ Petition was filed by the Directors of the Corporate Debtor before the Hon'ble High Court of Madras. Apart from the above, the counter filed by the Corporate Debtor, alleges various Financial Fraud done by the Financial Creditor in connivance with the Axis Bank and KPS....
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....Notes, the Letter of Confirmation and the Letter of Renewal limits would manifest the fact that the same are fact borne on record and the Corporate Debtor by simply making an allegation that a financial fraud happened between the parties and without placing on record any concrete evidence to substantiate the same, would not absolve the Corporate Debtor's responsibility to repay the amount to the Financial Creditor. 17. The objections raised by the Corporate Debtor are hypothetical and illusory and it does not warrant any interference by this Tribunal. Further, in relation to the plea of pre-existing dispute as raised by the Corporate Debtor, it is relevant to refer to the decision of the Hon'ble Supreme Court both in Innoventive Industries Ltd. -Vs- ICICI Bank and another, (2018) 1 SCC 407 as well as Mobilox Innovations Pvt. Ltd.. -Vs- Kirusa Software Pvt. Ltd. (2018) 1 SCC 353, wherein the Hon'ble Apex Court after going through the Scheme of I&B Code, 2016 in depth in relation to an Application under Section 7 filed by a Financial Creditor where there is an existence of a 'financial debt' and its 'default' in excess of Rs. 1,00,000/-, this Tribunal is ....
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....s in relation to the Corporate Debtor in terms of the provisions of I&B Code, 2016. 21. As a consequence of the Applications being admitted in terms of Section 7 of the I&B Code, 2016, moratorium as envisaged under provisions of Section 14(1) and as extracted hereunder shall follow in relation to the Corporate Debtor; (a) the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor." 22. However during the pendency of moratorium period in terms of Section 14(2) and 14(3) as ....