2020 (12) TMI 323

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....tioner")i.e. "Siemens Financial Services Pvt. Ltd." under Section 7 of the Insolvency & Bankruptcy Code, 2016, (hereinafter referred to as the "Code"), praying for initiation of Corporate Insolvency Resolution Process of the Corporate debtor i.e. "Panacealife Healthzone Private Limited." on grounds of its inability to liquidate its financial debt. 2. As per averments made in the petition, the Corporate Debtor had approached the applicant and requested to grant Financial Facilities. Subsequently, the applicant had entered into a finance Agreement dated 30.09.2015 which has been sanctioned to the Corporate Debtor vide sanction letters dated 23rd December, 2015 and 29th December, 2015. Thereafter the applicant has entered into Finance Agree....

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....as also filed under Sec 60(5) if IBC, 2016 read with Rule 11 and Rule 32 of NCLT Rules, 2016 seeking substitution of the name of Interim Resolution Professional. It is submitted that the petition under Sec 7 IBC was filed proposing the name of Mr. Tarun Batra as IRP but in view of assignment of debt in favour of the applicant, there is the change in circumstances and in the premises, thus applicant prays to substitute the name of IRP and proposes Mr. Devendra Singh IBBI Registration No. IBBI/IPA-002/IP-N00001/2016-2017/10001 to he appointed as IRP. 9. Inspite of seven opportunities being granted to the corporate debtor, the corporate debtor choose not to file reply in any of the substitution application nor in the main petition. 10. T....

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....39;ble Supreme Court by order dated 04.02.2019 in Civil Appeal No. 853 of 2019. 14. It is further argued that the respondent has admitted their liability toward the corporate debtor in the petition filed for oppression and mismanagement i.e. CP No. 31/ALD/2019 stating "that the demand of loan from Seimens limited is due on the company which need to pay but Respondent No. 2 and 3 are not serious about this, which shows there ill intention". 15. Mere plain reading of the provision shows that in order to make an application under Section 7(1) the financial creditor/petitioner is required to establish: i.)Whether there is duly established financial debt. ii.) Whether there is default in payment by the corporate debtor. ....

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....ained in Sections 7, 9 and 10, no application for initiation of corporate Insolvency Resolution Process of a corporate debtor shall be filed, for any default arising on or after 25th March, 2020 for the period of six months or such months or such further period, not exceeding one year from such date, as may be notified in this behalf: Provided that no application shall ever be filed for initiation of Corporate Insolvency Resolution Process of a corporate debtor for the said default occurring during the said period. Explanation- For the removal of doubt, it is hereby clarified that the provisions of this Section shall not apply to any default for the said sections before 25th March, 2020." 17. Therefore, in the present a....

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....debtor. Explanation.-For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a licence, permit, registration, quota, concession, clearance or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license or a similar grant or right during moratorium period.} 2) The supply of essential goods or services to the c....