TaxTMI 
TaxTMI 
2022 (5) TMI 79
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....Form No. 1 under Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter as Rules) in the capacity of "Financial Creditor" by invoking the provisions of Section 7 of the Insolvency and Bankruptcy Code (hereinafter as Code) against 'Saisons Trade and Industry Private Limited' (hereinafter as 'Corporate Debtor'). 2. In the requisite Form-1, under the head "Particulars of Financial Debt" the amount claimed to be in default is Rs. 8,53,87,717/- with interest. The date of default is stated to be 20.04.2021. Brief Facts- 3. DBS Bank India Limited is a banking company incorporated in the Companies Act, 2013 having its Registered Office at Ground Floor Nos. 11 & 12 & First Fl....
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....ial, goods in process semi-finished goods; bank accounts including receivables and hypothecation of book debts, trade receivables and cash flows of the Corporate Debtor. The said credit facilities were further secured by the personal guarantee of Mr. Ankit V. Shah and Mr. Siddharth Chimanlal Shah who had also mortgaged their respective immovable properties in favour of the Petitioner. 8. The Petitioner has enclosed the following documents in support of the Facility granted to the Corporate Debtor: (a) Copy of the Memorandum of entry dated 19.10.2015; (b) Copies of Memorandum of Entry creating recording of equitable mortgage fated 02.06.2016 along with declarations both dated 02.06.2016; (c) Copy of Deed of Hypo....
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.... (v) Copy of letter of Continuity dated 24.06.2019; (w) Copy of the facility letter bearing ref No. BSU/IBG3/297/2020 dated 10.02.2020; (x) Copy of Resolution dated 15.02.2020; (y) Copy of the Supplemental Working Capital facility Agreement dated 15.02.2020; (z) Copy of the facility letter bearing ref No. BSU/IBG 3/746/2020 dated 29.12.2020; (aa) Copy of the Supplemental Working Capital facility Agreement dated 29.12.2020; 9. The Corporate Debtor had issued two cheques bearing Cheque No. 033925 dated 24.03.2021(sic) for an amount of Rs. 4,80,00,000/- and Cheque No. 033926 dated 31.03.2021 for an amount of Rs. 3,70,00,000/- drawn on Dena Bank towards payment of the outstanding dues, whe....
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....f the hearing, the Corporate Debtor had admitted the liability hence, this Bench concludes that it is established beyond doubt that there is debt and default. Hence, the Petition is admitted. 14. On going through the submissions made by the Learned Counsel for the both the sides and on perusing the documents produced on record, it is understood that the Corporate Debtor has defaulted in repayment of debt and the Corporate Debtor failed to pay. 15. The above facts clearly reveal that the Corporate Debtor is liable to pay the Petitioner and defaulted in making the payment to the Petitioner. Considering the above facts, we come to conclusion that the nature of Debt is a "Financial Debt" as defined under section 5(8) of the Code. It has a....
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....ive henceforth with effect from the date of order, and shall be applicable by prohibiting institution of any Suit before a Court of Law, transferring/encumbering any of the assets of the Debtor etc. However, the supply of essential goods or services to the "Corporate Debtor" shall not be terminated during Moratorium period. It shall be effective till completion of the Insolvency Resolution Process or until the approval of the Resolution Plan prescribed under Section 31 of the Code. 19. That as prescribed under Section 13 of the Code on declaration of Moratorium the next step of Public Announcement of the Initiation of Corporate Insolvency Resolution Process shall be carried out by the IRP immediately on appointment, as per the provisions....