TaxTMI 
TaxTMI 
2020 (10) TMI 1255
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.... 4 of the Insolvency & Bankruptcy Code, 2016, to start Corporate Insolvency Resolution Process (hereinafter referred to as the 'CIRP') against the M/s. Kaneri Agro Industries Limited the Corporate Debtor, on the ground that, it has committed a default in paying the outstanding debt of Rs. 10,50,000/- The date of default is stated as 30th September, 2019. 2. The brief facts of the case are as under : I. The Corporate Debtor, from time to time, availed loan from the Financial Creditor. The Corporate Debtor agreed to pay the same as per the terms and conditions made between the parties. However, a sum of Rs. 10,00,000/-has remained outstanding, which is net outcome of the transactions in the Financial Year 2018-19. ....
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....r, we note that such transactions have been either squared up on the same date or in a very short time. A copy of account of the Corporate Debtor in the books of account of the Financial Creditor for the F.Y. 2018-2019 and 2019-20 is reproduced herein below to establish this factual situation. SHREE AMBICA RICE MILL -SALAJADA DHOLKA ROAD, BAVLA Phone:9825323318 GSTIN: 24AAGFS54568NIZL PAN No. AAGFS5468N Ledger Date: 01/04/2018 to 31/03/2019 Date Type Ref No. Particulars Debit Credit Balance Account : KANERI AGRO INSUTRIES LTD -BAVLA (5833) 16/04/2018 REC HDFC BANK CC A/C NO. 09568 10,00,000.00 10,00,000.00 16/04/2018 PAY ONLINE ....
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....3/2019 TDS T.D.S. ON INTEREST (RECEIVE) 16,471.00 10,00,000.00 TOTAL 96,64,712.00 86,64,712.00 10,00,000.00 DHOLKA ROAD, BAVLA Phone :9825323318 GSTIN: 24AAGFS54568NIZL PAN No. AAGFS5468N Date Type Ref No. Particulars Debit Credit Balance Account : KANERI AGRO INSUTRIES LTD -BAVLA (5833) 01/04/2019 OBL OPENING BALANCE 10,00,000.00 10,00,000.00 17/04/2019 PAY ONLINE HDFC BANK CC A/C NO. 09568 25,00,000.00 35,00,000.00 18/04/2019 REC ONLINE HDFC BANK CC A/C NO. 09568 15,00,000.00 20,00,000.00 20/04/2019 REC ON....
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....parties to create turn over/volume of transactions in the account of Corporate Debtor, so that such limit could be sanctioned. Another reason can be that Rs. 30,00,000/- given in July and August, 2018 have been utilised by the Corporate Debtor to give margin money to avail cash credit. The above conclusions are based upon the nature and sequence of transactions between the parties where no material has been brought on record to show that the Corporate Debtor in fact required this money i.e. amount disbursed in July and August, 2018 for its business purposes and actually utilised the same for that purpose as other transactions have been squared up either on the same date or within a period of less than four days from the date of receipt of m....
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....y Bank by itself raises serious questions about the credibility and intention of the Corporate Debtor. 6. When the factual position as regards to the financial transaction between the Financial Creditor and Corporate Debtor coupled with the financial facility obtained by the Corporate Debtor by the Bank and declaration of the same as NPA are read together, the only inevitable conclusion which could be reached without any difficulty is that the Financial Creditor has helped the Corporate Debtor to obtain loan from the Bank particularly when no material of whatsoever nature has been brought on record by the Financial Creditor to show that money was indeed given to Corporate Debtor for genuine business purpose and it made sincere efforts to....