TaxTMI 
TaxTMI 
2020 (10) TMI 680
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...., 2016 ("I&B Code, 2016") in the format as prescribed under Rule 7 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as "AAA Rules") by the Applicant viz., M/s. Pondicherry Extraction Industries Pvt. Ltd (hereinafter referred to as "Petitioner & Corporate Debtor") consequent upon a default committed by M/s. J R Foods Limited (principal borrower) to Bank of Baroda, as the Corporate Applicant had guaranteed the repayment of amounts borrowed by M/s. J R Foods Limited to Bank of Baroda. 2. The Corporate Applicant seeks to initiate the Corporate Insolvency Resolution Process (CIRP) on its own, to declare moratorium and appoint Interim Resolution Professional under Section 10 of the I&B C....
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....es in page No. 8 of their Application and the same is extracted hereunder: - Sl. No Category Amount (Rs.) 1 Financial Creditors 46,44,55,953 2 Operational Creditors 1,45,45,250 3 Statutory Dues 2,69,260 Total 47,92,70,463 7. As per Annexures-3 on the Application, the E-auction Sale Notice cum Statutory 30 days sale notice is seen to have been issued by Bank of Baroda explaining inter-alia M/s. Pondicherry Extraction Industries Pvt. Ltd as the Corporate Guarantor and M/s. J.R.Foods Limited as the Borrower-cum-Mortgagor who is Applicant in IBA/989/2019. 8. The Corporate Applicant has submitted that the Applicant Company viz., M/s. P....
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....icherry R D and Sub R D On the North -House belonging to Aharman Bunala, on the South - House belonging to Sundari, On the East - 100 feet Road, on the West land of Purushothaman 10. The Authorized Representative for the Corporate Applicant submitted that the Corporate Applicant earns rental income out of this asset and in view of its guarantee obligations, is left with no other choice, except to protect this asset and hence this initiative of approaching this Tribunal with a prayer for initiating the CIR Process. 11. The Corporate Applicant claims that they satisfy the conditions for initiating an Application under Section 10 of the Code viz., there is an existence of debt, there is a default and the Corporate Debtor is not disqualifie....
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....ribunal is well aware of the Judgment of the Hon'ble NCLAT in the matter of Unigreen Global Private Limited -Vs- Punjab National Bank and Ors., wherein it has been held that the Adjudicating Authority is not empowered to go beyond the records as prescribed under Section 10 and the information as required to be submitted in Form 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 subject to the ineligibility prescribed under Section 11. 17. From the financial statements submitted by the Corporate Applicant, as to the query raised by this Authority, the Corporate Applicant was unable to explain as to why there is a depletion in the amount of General Reserve as evidenced from the heading Reserves and Sur....
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....rate Applicant was unable to explain as to why there is a depletion in the amount of General Reserve as on 31.03.2018 as compared to 15.09.2019. The reason for drain in reserve could not be explained by the Applicant to the satisfaction of this Tribunal. Further, at page 31 of the typed set filed with the Application, in the Annexures to the Balance Sheet there is a discrepancy as to the Authorized Capital and the Issued, Subscribed and Paid up Capital and as such the present Application filed by the Corporate Applicant is being surrounded with doubts. 20. It may be noted that the Hon'ble Supreme Court in catena of decisions has held that the purpose and object of the I&B Code, 2016 is only for Resolution and not otherwise, however, a ....