2022 (1) TMI 14

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....ion filed by the Reserve Bank of India (Appropriate Regulator) under section 227 read with section 239(2)(zk) of the Insolvency and Bankruptcy Code, 2016 (Code) for initiation of Corporate Insolvency Resolution Process (CIRP) against Reliance Capital Limited (RCL), the Financial Service Provider (FSP). 2. To a specific query to Ld Sr Counsel for petitioner with regard to challenge to order of appointment of administrator, on instructions, it is stated that no proceedings are pending before any court of law nor there is any stay. 3. We have heard Mr. Ravi Kadam, Ld Sr Counsel appearing for the Petitioner/Appropriate Regulator and perused the records. 4. The respondent/FSP is a company registered under the Companies Act, 1956, having....

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.... f. Certificate under the Bankers Books Evidence Act, 1891. Letter dated 02.12.2021 from YBL referred to report of Central Repository of Information on Large Credits (CRILC) as on 29.11.2021 demonstrating that the account is in default with the status of 'doubtful' (i.e. account has been classified as a NPA for more that 12 months, in accordance with the RBI master circular on Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to advances). 7. The RBI vide its notification dated 29.11.2021, in exercise of its powers under section 45-IE of the Reserve Bank of India Act, 1934, superseded the Board of Directors of RCL and appointed Mr Nageswara Rao Y, as the Administrator (page 14 of petition). RBI h....

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....he total amount in default is in excess of limit prescribed under section 4 of the Code, which at present is Rupees one crore. This petition is filed on 02.12.2021 Thus, the present petition is not hit by limitation. 12. Having considering the facts as afore stated, we are satisfied that this is a fit case for initiation proceedings under section 227 read with section 239(2)(zk) of the Insolvency and Bankruptcy Code, 2016 read with Rule 5 and 6 of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudication Authority) Rules, 2019 and the debt in question qualifies as financial debt under section 5(8)(c) read with section 3(11) of the Code. 13. The RBI vide its not....

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.... of the Code or passes an order for liquidation of the FSP 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. e. In terms of rule 5(a)(iii) of the Rules, Mr Nageswara Rao Y, Trade World, b- Wing, 7th floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, e-mail id: [email protected] is hereby appointed as Administrator of the FSP to carry out the functions as per the Code. The Administrator shall carry out his functions as contemplated by sections 15, 17, 18, 19 and 20 of the Code. f. During the CIRP period, the management of the FSP shall vest in the Administrator. The o....