2021 (3) TMI 1304

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....be Proprietary Concern under Section 7 of the Insolvency & Bankruptcy Code, 2016, r.w. Rule 4 of the Insolvency & Bankruptcy Code, 2016, to start Corporate Insolvency Resolution Process (hereinafter referred to as the 'CIRP') against the Kingston Paptech Pvt. Ltd.,- the Corporate Debtor, on the ground that, it has committed a default in paying the financial debt of Rs. 37,10,972/-. The date of default is stated to be 14-07-2015. 2. The Financial Creditor stated that by two separate RTGS it has given loan of Rs. 52,50,000/- to the Corporate Debtor to be payable on demand. 3. On 14.07.2015, the Corporate Debtor to paid sum of Rs. 37,10,972/- remaining balance amount of Rs. 22,50,000/- + interest to be unpaid and committed default i....

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....rate Debtor raised technical defence that Proprietary concern cannot be filed an application under IBC 2016. However, now Hon'ble NCLAT in the case of Neeta Saha v. Ram Niwas Gupta 191(IBC)156/2020 has held that Proprietary concern being creditor can initiate Corporate Insolvency Resolution Process against the Corporate Debtor, so this technical defence is not maintainable. Another defence taken was that the Certificate of Information Utility is not produced, however, law does not mandate to produce such Certificate, law requires from the Financial Creditor to produce evidence of the debt and default by the Corporate Debtor, where in this case evidence is produced. hence, this technical defence is also not maintainable. 8. In view of the....

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....ecover 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: (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. 2. The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the Resolution Plan under subsection (1) of the Section 31 or passes an order for liquidation of Corporate Debtor Company under Section 33 of the Insolvency & Bankruptcy Co....