TaxTMI 
TaxTMI 
2019 (9) TMI 1564
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.... this Petition under section 7 of The Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "the Code") read with Rule 4 of The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as "the Rules") seeking reliefs under Section 7(5)(a) and Section 13(1)(a)(b)(c) of the Code. 2. The 1st applicant/operational creditor is a private limited companies registered under the Companies Act having identification No. U51101MH2009PT192447 and having registered office at Kamat Industrial Estate, Prabhadevi, Mumbai 400 025. The 2" applicant/operational creditor is a private limited companies registered under the Companies Act having identification No. U1729MH2009PTC194390 and having registere....
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....3 Working computation sheet as on 31.07.2018 15 4 Financial contracts reflecting amendments and waivers to date 16-43 5 Entries in a bankers book in accordance with the Bankers Books Evidence Act. 44-45 6 Other documents to prove the existence of financial debt with amount and date of default | 46-84 7 Proof of service 6. The respondent/corporate debtor filed reply in affidavit inter alia stating that the application filed by the financial creditors under Section 7 of the I & B Code is barred by limitation since the credit facilities were availed somewhere in the year 2012. 'That, the instant application is not maintainable in the law, being filed by two applicants without having any inter....
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....luding interest @ 18% p.a. payable by the corporate debtor on the date of maturity i.e. on 30.09.2017. Relevant gist of letter dated 16.01.2018 placed at page No. 60 to the application, addressed to the first applicant by the corporate debtor is reproduced here below: "We refer to your letters dated 15.12.2017 and earlier correspondence in this regard, we regret to inform you that despite our best efforts we could not arrange funds to repay the amount on 31.12.2017 as per our commitment. We are in the process of arranging funds and looking forward to have a resolution towards the credit facilities obtained by us." Similar letter dated 31.01.2018 has been issued by the corporate debtor to the second applicant wherein the corporat....
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....lvency resolution process against a corporate debtor before the adjudicating authority when a default has occurred." Thus, there is no bar in filing an application either by self or jointly with other. financial creditors. Thus, the second objection raised by the respondent is also not sustainable. 12. The third objection raised by the respondent is that in order to initiate CIRP it is mandatory that a default in repayment of the financial debt has occurred. On perusal of the record it is found that while executing demand promissory note with the applicants the respondent had promised to pay back the amount on 30.09.2017 along with interest @ 18% per annum with quarterly rest as. reflected in demand promissory note placed at page No. ....
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.... documents produced by the Financial Creditor clearly establish the 'debt' and there is default on the part of the Corporate Debtor in payment of the 'financial debt'. 18. To decide the issue, it is desirable to refer to the Judgment delivered by the Hon'ble Supreme Court, in the matter between M/s. Innoventive Industries Ltd. Vs. ICICI Bank & Anr., in Civil Appeal Nos. 8337-8338 of 201 7, in Para No. 30 has clearly held as follows; "30. On the other hand, as we have seen, in the case of a corporate debtor who commits a default of a financial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the financial creditor to satisfy itself that a default has occurred.....
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....rohibiting all of the following in terms of subsection (1) of Section 14 of the Code: - (i) 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; (ii) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (iii) 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 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ac....