2020 (1) TMI 1254

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....ereinafter 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. The first applicant/financial creditor viz. M/s. Vignaharta Corrugators Private Limited is a private limited company incorporated on 03.11.2009 having registered office at Dombivli, Mumbai having identification No. U74990MH2009PTC196826. 3. The second applicant/financial creditor viz. M/s. Charma Holding Private Limited is a private limited company incorporated on 03.11.2009 having registered office at Silvassa, U.T. of DNH having identification No. U45202DN2006PTC000207. 4.....

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....e. Authorised share capital of the respondent company is Rs. 1,50,00,00,000/- and paid-up share capital is Rs. 76,56,75,000/-. 10. The applicants/Petitioners have submitted that they have extended financial assistance by way of unsecured loan to the corporate debtor as per the computation annexed to the application at page No. 31. That, details of the unsecured loan sanctioned/disbursed, copy of promissory notes entered into between the parties and other communication are annexed to the application at page Nos. 45 to 81. The applicants have also furnished copies of Resolution/authorisation in favour of Mrs. Neeta Rameshbhai Patni, financial contracts reflecting all amendments and waivers, copies of entries in the Bankers Book in accordan....

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..... [2017] 84 taxmann.com 320/143 SCL 625 the Hon'ble Supreme Court while explaining sections 7 and 8 of the IB Code, observed and held as under:-- "27. The scheme of the Code is to ensure that when a default takes place, in the sense that a 'debt' becomes due and is not paid, the insolvency resolution process begins. Default is defined in section 3(12) in very wide terms as meaning non-payment of a debt once it becomes due and payable, which includes non-payment of even part thereof or an instalment amount. For the meaning of "debt", we have to go to section 3(11) which in turn tells us that a debt means a liability of obligation in respect of a "claim" and for the meaning of claim, we have to go back to section....

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.... detailed form in 5 parts, which requires particulars of the applicant in part I, particulars of the corporate debtor in part II, particulars of the proposed interim resolution professional in part III, particulars of the financial debt in part IV and documents, records and evidence of default in part V. Under Rule 4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or sped post to the registered office of the corporate debtor. The speed, within which the adjudicating authority is to ascertain the existence of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of t....

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....nly when this is proved to the satisfaction of the adjudicating authority then the adjudicating authority may reject an application and not otherwise......". 18. That, the application is found to be complete in all respect. Hence it does not warrant any rejection or dismissal. 19. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the application is complete in all respect and the Corporate Debtor committed default in paying the financial debt to the Applicant and the respondent company has acknowledged the debt. 20. In the instant case, the documents produced by the Financial Creditor clearly establish the 'debt' and there is default on the part of the Corporat....

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...., admitted and the moratorium is declared for prohibiting all of the following in terms of sub-section (1) of section 14 of the Code:-- (i) 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; (ii) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (iii) 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 Securitisation and Reconstruction of Financia....