TaxTMI 
TaxTMI 
2019 (9) TMI 1656
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....vency and Bankruptcy Code, 2016 (hereinafter referred to as IBC) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against M/s. Neerajakshi Iron and Steel Private Limited (hereinafter referred to as 'Corporate Debtor'). 2. Before proceeding with this matter, it would be appropriate to make a note of background facts for the purpose of determination of this petition. 3. The Petitioner/ Financial Creditor, is a Public Sector Bank incorporated under the Banking Companies (Acquisition ad Transfer of Undertakings) Act, 1980, having its Regd. Office at Post Box No.88, Mangladevi Temple Road, Manglaore, Karnataka State - 575 001, and branches all over the country and one such Branch....
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....eement for working capital c) Joint Deed of Hypothecation. d) Declaration e) Declaration cum Third Party 7. It is stated that the Guarantors executed Guarantee deed dated 09.05.2011 in favour of Consortium Bank promising to repay Rs.1475.00 Lakhs apart from interest and costs to Consortium Banks in case of default in repayment of the same by Corporate Debtor. 8. It is stated that with intent to secure for repayment of the money that was due or may due from time to time or at any time from Corporate Debtor to the Consortium Banks, the Corporate Debtor deposited with the Consortium Banks Regd. Document No. 1358 of 2007, 1355 of 2007, 1444 of 2007, 1356 of 2007, 1373 of 2007, 1321 of 2007, 1416 of 2007, 1366 of....
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....rtium working capital and Term Loan advance to the Corporate Debtor dated 09.05.2011 and as such the Financial Creditor was constrained to classify the account as Non-Performing Asset (NPA) as per the prudential norms prescribed by the Reserve Bank of India. It is submitted that in order to recover the moneys advanced to the Corporate Debtor, the Financial Creditor has filed O.A No. 1331/2016 before the Hon'ble Debt Recovery Tribunal and the same was allowed on 12.10.2018. 14. It is further stated that the Financial Creditor issued notice of default to the Corporate Debtor dated 25.03.2019. The Corporate Debtor evaded to receive the said notice and got it returned with endorsement 'left'. 15. The matter was posted for hear....
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.... Authority is satisfied with the proof placed by the Petitioner that default has occurred in respect of financial debt which the Corporate Debtor was liable to pay to the Petitioner. The Petitioner has also placed on record proof of sending notices and paper publication. The Petitioner has complied with all the requirements as stipulated under the provisions of the IB Code, 2016 for the purpose of initiating Corporate Insolvency Resolution Process. In these circumstances, this Adjudicating Authority is inclined to admit the instant petition. 20. The instant petition is admitted and this Adjudicating Authority order the commencement of the Corporate Insolvency Resolution Process which shall be completed in accordance with the time lines p....
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....f its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 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. 23. However, the supply of essential goods or services of the Corporate Debtor shall not be terminated or suspended or interrupted during moratorium period. The provision of Sub-section (1) of Section 14 shall also not apply to such transactions, as notified by the Central Government. 24. The IRP shall comply with the provisions of Sections 13 (2), 15, 17, & 18 of the Code. The directors of the Corporate Debtor, its promoters or any pe....