TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 1831
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....yed for, was incorporated on 29.05.1989 having its registered office at A-14, New Friends Colony, New Delhi - 110065. Since the registered office of the respondent corporate debtor is in New Delhi, this Tribunal having territorial jurisdiction over the NCT of Delhi is the Adjudicating Authority in relation to the prayer for initiation of Corporate Insolvency Resolution Process in respect of respondent corporate debtor under sub-section (1) of Section 60 of the Code. 3. It is appropriate to mention that the applicant Corporation Bank, is a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980, having its Registered Office at Mangla Devi Temple Road, Mangalore, Karnataka and a branch office amongst others at 1st Floor, Ektadwar Complex, Company Bagh, Civil Line, Moradabad - 244001. 4. Shri Arvind Kumar Srivastwa Chief Manager and authorized representative of the applicant bank, has preferred the present application on behalf of the applicant for initiation of corporate insolvency resolution process against the respondent corporate debtor in terms of the provisions of the Code. 5. The applicant bank has filed the present applicati....
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....0,00,000/- Facility 2 : Inland/Import Letter of credit/Buyers credit for Rs. 20,00,00,000/-. 9. In order to secure the loan facilities applicant and the respondent executed loan documents on 02.08.2013. Corporate Debtor also created equitable mortgage by depositing the title deed of the land as described in the application with the Financial Creditor and created charge over the land under the provisions of the Companies Act, 1956. 10. Besides applicant has placed on record CIBIL Report pertaining to Credit Information Report in respect of the respondent company. Applicant Bank has also filed the relevant statement of accounts along with certificate under Section 2 (a) of the Banker's Books of Evidence Act, 1891. 11. It is pertinent to note here that the applicant bank had filed Original Application bearing OA No. 28 of 2016 before Debts Recovery Tribunal, Delhi titled Corporation Bank Vs. M/s. Multiwal Pulp and Board Mills Private Limited. The OA was allowed on 15.10.2018 by Debts Recovery Tribunal, Delhi and defendant nos. 1 to 7 including the respondent company were directed to pay a sum of Rs. 56,70,74,811.06/- along with pendentelite and future interest @15% per annum ....
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....nd to reject the application filed under Section 7 of the code. 18. The corporate debtor is entitled to point out to the Adjudicating Authority that a default has not occurred; in the sense that a debt, which may also include a disputed claim is not due i.e. it is not payable in law or in fact. 19. Admittedly, the claim in the present case is based on a decree of a court of law. Respondent company had moved an application no. 1674/2016 for recalling the said decree, which was dismissed on 19.05.2017. Even appeal filed by the respondent corporate debtor under Section 20 of the Recovery of Debt due to Banks and Financial Institution act, 1993 was dismissed by Debts Recovery Appellate Tribunal. The judgement passed by Debts Recovery Tribunal, Delhi on 15.10.2018 has thus attained finality. The decree passed in favour of the applicant bank has since become final and binding upon the corporate debtor. Respondent has committed clear default in not paying the amount and interest as per the decree. 20. The application filed by the applicant financial creditor under sub-section 5 (a) of Section 7 of the code, has to be admitted on satisfaction that: I. Default has occurred. II. Appli....
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....n 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." 28. It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Central Government or the supply of the essential goods or services to the Corporate Debtor as may be specified, are not to be terminated or suspended or interrupted during the moratorium period. In addition, as per the Insolvency and Bankruptcy Code (Amendment) Act, 2018 which has come into force w.e.f. 06.06.2018, the provisions of mora....