2022 (7) TMI 198

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....16 for initiation of the Corporate Insolvency Resolution Process (hereinafter referred to as "CIRP") in respect to the Corporate Applicant i.e. M/s. Nana Layja Power Company Limited (hereinafter referred to as "Corporate Applicant") on the ground that the Corporate Applicant has committed a default of Rs. 271,62,98,645/-. 2. The Corporate Applicant, which is a wholly-owned subsidiary of IL & FS Energy Development Company Limited (in short "IEDCL") which in turn is a subsidiary of the Infrastructure Leasing & Financial Services Ltd. (in short "IL & FS"), was incorporated on 19th November 2010 under the Companies Act, 1956 for the purpose of setting up of 4,000 MW coal-based thermal power plant, 2000 MV gas-based combined cycle power project....

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....consent to the Board of Directors of the Corporate Applicant to initiate the CIRP subject to the approval of Hon'ble Justice (Retd.) Mr. D.K. Jain who in turn has granted his approval vide letter dated 11.02.2021 for initiation of the CIRP of the Corporate Applicant subject to approval of NCLT. The Hon'ble NCLAT vide its order dated 12.03.2020 in Company Appeal (AT) No. 347 of 2018 in the case of Infrastructure Leasing and Financial Services Ltd. vs. Union of India & Ors. had held that the management of the Corporate Applicant would get clearance from Hon'ble Justice (Retd.) Mr. D.K. Jain, who is supervising the resolution of the group companies of IL & FS. The relevant para of the aforesaid judgment is reproduced hereunder: "....

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....jakta Menezes, having Reg No. IBBI/IPA-001/IP-P01349/2018-19/12016 to act as an Interim Resolution Professional ("IRP") and the proposed IRP has also given her consent to act as an IRP wherein the proposed IRP has stated that no disciplinary proceedings are pending against her. 8. We heard the learned counsel for the Corporate Applicant and perused the material available on record. It is noted that the Corporate Applicant is a wholly-owned subsidiary of EIDCL, which is a subsidiary of IL & FS. The Corporate Applicant has committed the default in paying the debts, borrowed from the Financial Creditors and Operational Creditors to the tune of Rs. 271,62,98,645/-. 9. It is noted that on the recommendation made by the Resolution Consultant-A ....

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....ncy Resolution Process under Section 10 of the Insolvency and Bankruptcy Code, 2016. II. The moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 is declared for prohibiting the following in terms of Section 14(1) of the Code. a. the institution of suits or continuation of pending suits or proceedings against the corporate applicant including execution of any judgment, decree (s) or order (s) in any court of law, tribunal, arbitration panel or other authority; b. transferring, encumbering, alienating or disposing of by the corporate applicant 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 applicant i....

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....ry assistance and cooperation to the Interim Resolution Professional. Where any personnel of the Corporate Applicant, Promoter or any other person required to assist or co-operate with IRP, does not assist or Co-operate, the IRP is at liberty to make the appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order. VI. This Adjudicating Authority directs the IRP to make a public announcement for initiation of the Corporate Insolvency Resolution Process (CIRP) and call for submission of claims under Section 15 and Section 13(1)(b) of the I.B. Code. VII. It is further directed that the supply of goods/services to the Corporate Applicant Company, if continuing, shall not be terminated or suspended o....