TaxTMI 
TaxTMI 
2021 (10) TMI 1078
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....orate Insolvency Resolution Process (CIRP) against Riga Sugar Co Ltd. (Corporate Debtor). 3. The Corporate Debtor is a listed public company incorporated on 02.09.1980 having CIN: L15421WB1980PLC032970 under the Companies Act 1956, with the Registrar of Companies, West Bengal, Kolkata. Its registered office is at 14, Netaji Subhas Road (2nd Floor), PS Hare Street, Kolkata 700 001, in the State of West Bengal. Therefore, this Bench has jurisdiction to deal with this Petition. 4. This Petition was taken up for hearing upon notice on 07.06.2021 based on an urgent application bearing IA No. 522/KB/2021. Upon taking up the file, it was observed that there were several defects in the Petition. Therefore, the Adjudicating Authority granted the Petitioner seven days to cure the defects in terms of section 7(5) of the Code, and seven days thereafter to the Corporate Debtor to file their reply affidavit. 5. The matter was listed on 23.06.2021 for hearing, on which date, the Learned Senior Counsel appearing for the Financial Creditor submitted as follows: (a) The financial creditor was a non-banking finance company engaged in the business of giving loans. (b) On 17.....
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....hirty only) was due towards interest for the period of January to March 2018 and requested the Corporate Debtor to make payment immediately upon receipt of the said letter. A copy of the letter dated 15.04.2018 is annexed with the Petition at page 25 and marked as Annexure I Exhibit H. (i) On 27.04.2018, the Corporate Debtor replied to the Financial Creditor's letter dated 15.04.2018 requesting for further time of six months for payment of interest. The Financial Creditor vide letter dated 03.05.2018 granted the Corporate Debtor time till the first week of July 2018 to make the payment of outstanding interest. Copies of the letters dated 27.04.2018 and 03.05.2018 are annexed with the Petition at pages 26 and 27 and marked as Annexure I Exhibit I and Exhibit J, respectively. (j) Having not received the amount due, on 10.07.2018 the Financial Creditor wrote to the Corporate Debtor recalling the loan amount with immediate effect and directed the Corporate Debtor to pay the principal amount along with the outstanding interest due within fifteen days of receipt of the recall letter. A copy of the recall letter dated 10.07.2018 is annexed with the Petition at page 2....
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....cane Department, Government of Bihar issued a letter for transfer of 85% of sales realisation of Distillery unit in a special deposit account for payment of cane price. The bankers are keeping 15% of revenue from the distillery unit towards the recovery of dues which leaves nothing for the company. (g) The corporate debtor has been incurring losses since 2011-2012 and total losses have accumulated to Rs. 126 crore till 2019-2020. At present, the Corporate Debtor also owes Rs. 51 Crore to the farmers for two seasons. (h) Since December 2020, there has been no sugar or distillery stock for sale. On 22.05.2021, the Corporate Debtor started its distillery operations and has thus far produced Rs. 1.41 Crore worth of ethanol, however, after appropriations are made as aforesaid, there will be no funds left with the Corporate Debtor. (i) There is no possibility to generate quick revenue and there are no substantial funds available with the Corporate Debtor to meet its payment obligations. 7. We have heard the learned Senior Counsel for the financial creditor and the learned counsel for the corporate debtor and perused the record. 8. It is apparent from the ....
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....all be a moratorium under section 14 of the Code. c. The moratorium shall have effect from the date of this order till the completion of the CIRP or until this Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 of the IBC or passes an order for liquidation of Corporate Debtor under section 33 of the Code, as the case may be. d. Public announcement of the CIRP shall be made immediately as specified under section 13 of the Code read with regulation 6 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. e. Mr. Neeraj Jain (Reg. No. IBBI/IPA-001/IP-P01067/2-017-2018/11758), having address at 4, Synagogue Street, Suite No. 205, 2nd Floor, facing Brabourne Road, Kolkata- 700001, e-mail id: [email protected], is hereby appointed as Interim Resolution Professional (IRP) of the Corporate Debtor to carry out the functions as per the Code, subject to his possessing a valid Authorisation for Assignment (AFA) in terms of 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016. The fee payable to IRP or, as the case may b....