TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 1424
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....IN: U15421TZ2008PLC014539, its registered office at 51, Appuswamy Layout, Red Fields, Coimbatore- 641 045. (2) M/s. Badami Sugars Limited ('Respondent/Corporate Debtor') was incorporated on 01.01.2002, having CIN: U15429KA2002PLC029955 and its Authorized Share Capital is Rs. 2,00,00,000/- and Paid Up Capital of Rs. 1,31,05,0070/- (3) It is stated that the amount is found due and payable vide Arbitration Award dated 18.05.2016 passed by Justice G. Patri Basavanna Goud and the said Award has become enforceable pursuant to Section 36 of the Arbitration & Conciliation Act, 1996 and there being no stay as against the enforcement of the Award. The amounts were advance towards acquisition of M/s. Badami Sugars Limited, free of encumbrances, vide MOU dated 24.02.2011 which acquisition did not fructify owing to breach by M/s. Badami Sugars Limited and held liable to be refunded vide the Arbitration Award. (4) It is also stated the Arbitration Award has specifically held that the sum of Rs. 10,06,00,000/- was advanced by the Petitioner to the Respondent under the MOU, that such amounts were meant only for discharge of dues to the cane growers for cane supplied by them to the Re....
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.... (3) It is stated that the Agreement referred to above is towards purchase by the Petitioner (Group C), of the shares of the Respondent Company (Group B), from the party referred as Group A. The substratum of the agreement is between Group A and Group C. Group B, that is the Respondent Company is only signing in the capacity of a confirming party to the agreement. Any monetary transaction made by the Petitioner Company, arising out of this Agreement, is in discharge of the covenants of the said Agreement and is on account of sums payable to Group C of the Agreement. Therefore, the cause of action does not lie against Group B, which is the Respondent Company. (4) It is further stated that the Petitioner is referring to an Arbitral Award dated 18th May, 2016 wherein the Respondents arrayed therein are ordered to pay the Petitioner the amounts stated therein. The Respondent Company refutes this and submits that the Arbitral Award was not upon itself, but upon the three parties listed therein. The Petitioner further claim an amount of Rs. 22,84,07,970/- as the amount in default as per Section 5(8) (f) of the IBC, 2016. The Respondents submits that, the amount received by it in pursu....
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....except to adjudicate the matter as merits. 7. So far as the law with regard to initiation of CIRP is concerned, Hon'ble NCLAT vide order dated 15th May, 2017 passed in Company Appeal (AT) (Insolvency) No. 1 & 2/2017 in the case of M/s. Innoventive Industries Limited vs. ICICI Bank & Anr. has dealt the issue of admission of a case filed under Section 7 of the Code, under Paras 55 to 58, which are extracted below: "55. Process of initiation of Insolvency Resolution process by a financial creditor is provided in Section 7 of the I&B Code. As per sub-section (1) of Section 7 of the I&B Code, the trigger for filing of an application by a financial creditor before the Adjudicating Authority is when a default in respect of any financial debt has occurred. Sub-section (2) of Section 7 provides that the financial creditor shall make an application in prescribed form and manner and with prescribed documents, including: i. "record of the default" recorded with the information utility or such other record or evidence of default as may be specified; ii. The name of the resolution professional proposed to act as an interim resolution professional; and iii. Any other information as m....
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....im 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 speed 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 the receipt of the application. It is at the stage of Section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that the "debt", which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to the applicant to rectify the defect within 7 days of receipt o....