2021 (2) TMI 785

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....st Shakti Motors Automobiles Private Limited (hereinafter called "Corporate Debtor") alleging that the Corporate Debtor committed default in making payment to the financial Creditor in view of the invoices raised by them upon the Corporate Debtor, by invoking the provisions of Section 7 of Insolvency and Bankruptcy Code (hereinafter called the "Code") read with Rule 4 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. The applicant is a private limited company, registered and incorporated under the Provisions of Indian Companies Act, 1956 and subsisting under the Companies Act, 2013. That applicant is carrying on its business of manufacturing, selling, distribution of automotive, industrial, marine paints ....

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....s noteworthy that the corporate debtor issued a demand promissory note for an amount of Rs. 22,50,000/- along with interest @12% p.a. as a collateral security to the applicant, which clearly demonstrates that the amount of Rs. 22,52,000/- given by the applicant to the corporate debtor was a financial debt in terms of Section 5(8) of Insolvency and Bankruptcy Code, 2016. 7. The applicant further submits that at this juncture, in the instance case there were two separate components in the agreement i.e. financial contribution for an amount of Rs. 22,50,000/- and annual procurement schedule for 4 year to be honoured by the corporate debtor. In terms of Clause 3 sub clause (b) of the said agreement, it was agreed between the parties that the....

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.... Insolvency Resolution Process of the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016. Since the Registered office of the Corporate Debtor is situated in Mumbai, this Hon'ble Tribunal has territorial jurisdiction to entertain the present Application. 11. The matter has been listed from time to time on board. Ample opportunity was given to the Corporate Debtor to file its reply. Not only the Corporate Debtor failed to file a reply but also failed to make representation before this Bench. Therefore, the Corporate Debtor was set ex-parte vide an order of this Bench dated 05.12.2019. Later the constitution of the Bench was changed and the Corporate Debtor again was given an opportunity to be present before this Bench and make....

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....fessional appointed herein, immediately upon communication of this Order. (d) That this Bench hereby prohibits 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; transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; 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; t....