TaxTMI 
TaxTMI 
2019 (2) TMI 1989
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....8223;) has sought the Corporate Insolvency Resolution Process (hereinafter called "CIRP‟) of New Phaltan Sugar Works Limited (hereinafter called the "Corporate Debtor‟) on the ground, that the Corporate Debtor committed default on 30.06.2017 in repayment of facilities granted to the Corporate Debtor to the extent of Rs. 1255.17 Lacs, under Section 7 of Insolvency and Bankruptcy Code, 2016 (hereafter called the "Code‟) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. On perusal of the Petition it reveals that the following facilities were granted to the Corporate Debtor by the Petitioner. Sr. No. Nature of Facility Amount (in lacs) 1 &nbs....
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.... b. The Corporate Debtor is running for the last 90 years, workers, and farmers supplying the sugarcane and their families are depending on the Corporate Debtor for their survival. c. An Application filed by the Corporate Debtor before DRT, Pune is pending for adjudication. d. The Petitioner has taken symbolic possession of the machineries of the Corporate Debtor on 03.05.2018. e. After the issue of Notice U/s 13 (2) of the SARFAESI Act, 2002, by the Petitioner, the Corporate Debtor has taken out an application before the DRT and the same is pending before the said Forum. f. The Petitioner has wrongly charged interest of Rs. 8,44,34,353/- and penal interest of Rs. 8,73,475/- for the first Term Loan o....
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....4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or speed post to the registered office of the corporate debtor. The speed, within which the adjudicating authority is to ascertain the existence of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of the receipt of the application. It is at the stage of Section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that the "debt", which may also include a disputed claim, is not due. A ....
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....cree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; (c) 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 Act, 2002 (SARFAESI Act); (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor. (II) That the supply of essential goods or services to the Corporat....