2022 (7) TMI 201

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.... of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Ms. Manju Gutpa (hereinafter referred to as 'Petitioner/Financial Creditor') to initiate the Corporate Insolvency Resolution Process ('CIRP') against Orchid Textiles Private Limited (hereinafter referred to as 'Respondent/Corporate Debtor'). The petition is signed by Ms. Manju Gupta and the affidavit verifying the contents of the application is on page 15-17 of the petition. 2. The master data of the corporate debtor is stated to be filed as Annexure-A-1 of the petition. The Corporate Debtor is stated to be incorporated on 13.04.2006 and is a doing the business in textiles. The company having its registered address at Village Saidpura, Derabassi, Mohal....

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.... loan. 4. In Part-III of Form No.1, Mr. Pawan Sharma, Registration No.IBBI/IPA-002/IP-N00779/2019-2020/12463 has been proposed as Interim Resolution Professional (IRP). Form No.2 dated 02.12.2020 along with the Certificate of Registration issued by the Indian Institute of Insolvency Professional of ICAI and the certificate of IBBI issued in favour of proposed Interim Resolution Professional i.e. Mr. Pawan Sharma are attached at Annexure-A-2 of the petition. 5. It is stated in Part-IV of Form No.1 that the petitioner has provided loan amount of Rs.60,00,000/- (principal). The total amount claimed to be in default is Rs.1,25,08,386/- as on 15.11.2020(including interest). Copy of MOU (Annexure A-3), copy of loan agreement dated 12.12.2014(An....

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....ent petition is filed vide Diary No. 01959 dated 24.12.2020. Therefore, the present petition is filed within limitation. 11. Another issue for consideration is whether there is default in payment or not. As per Section 7 of IBC which is reproduced below :- "Section 7 Initiation of corporate insolvency resolution process by financial creditor. (1) A financial creditor either by itself or jointly with 1[other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government,] may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred. 2[Provided that for the financial cr....

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....debt owed not only to the applicant financial creditor but to any other financial creditor of the corporate debtor. " 12. It is observed from the record that in the present case, the occurrence of default is evidenced by the copy of the loan agreement and arbitration award and the same are attached as Annexure-A-5 and Annexure-A-7 respectively of the petition. The respondent-corporate debtor has also filed a reply wherein it has been admitted that there is default in respect of financial debt and amount mentioned in the petition is due towards the petitioner and shown its incapacity to pay the liability. The application filed in the prescribed Form No.1 is found to be complete. Another condition is that there are no disciplinary proceedin....

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....; (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 Securitization 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. (e) It is further directed that the supply of essential goods or services to the corporate debtor as may be specified, shall not be terminated or suspended or interrupted during the mora....