TaxTMI 
TaxTMI 
2022 (7) TMI 1249
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....cating Authority) Rules, 2016 (for brevity 'the Rules') with a prayer to trigger Corporate Insolvency Resolution Process in respect of respondent Company M/s. V4 Infrastructure Private Limited, referred to as the corporate debtor. 2. It is appropriate to mention that the applicant M/s. Kamal Renu Credit and Invest Private Limited is a company registered under the provisions of The Companies Act, 1956 on 11.01.1993 having its registered office situated at 312 Pratap Bhawan, 5 Bahadur Shah Zafar Marg, New Delhi-110002. Mr. Dinesh Kumar, duly authorized on behalf of applicant vide Resolution dated 07.03.2022, has preferred the present application on behalf of the applicant for initiation of insolvency resolution process against the ....
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....e market, the area of operation of the corporate debtor and also due to the circumstances beyond control of the corporate debtor. b. Further it is submitted that apart from the sluggish commercial real estate market, the corporate debtor is entangled in slew of court litigations which has further added to hampering of commercial operations of the Judgment debtors. 6. The applicant has filed its rejoinder stating that the Corporate Debtor, itself admitted the claim and non-service of the agreed interest on the said loan. Further it is submitted that vide order dated 29.04.2019 passed by the Hon'ble High Court of Delhi in OMP (ENF.) (COMM), wherein the Corporate Debtor was restrained to transfer and or create any third party r....
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....g Authority) Rules, 2016. There is a declaration made by him that no disciplinary proceedings are pending against him in Insolvency and Bankruptcy Board of India or elsewhere. In addition, further necessary disclosures have been made by Mr. Prabhat Kumar as per the requirement of the IBBI Regulations. Accordingly, it is seen that the requirement of Section 7(3)(b) of the Code has been satisfied. 8. The applicant has placed following documents on record to prove its claim: i. Copy of Loan Agreement dated 29.11.2021 executed between the financial creditor and corporate debtor. ii. Copy of Bank Statements for the period between 1.10.2021 to 31.10.2021 of the financial creditor extending loan to the corporate debtor. ....
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....g default in repayment of loan and admitting its liability towards the applicant herein. 10. Needless to say, that an application under Section 7 of the Code is maintainable if the debt is proved to be due and there is default. In view of the Section 4 of the Code, the moment default is of Rupees one hundred lakhs or more, an application to trigger Corporate Insolvency Resolution Process under the Code is maintainable. 11. The applicant clearly comes within the definition of Financial Creditor. The material placed on record as stated in the paras above further confirms that respondent has debt due and has committed default in repayment of the outstanding financial debt. On a perusal of Form-I filed under Section 7 of the Code read wit....
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....dia (Insolvency Resolution Process for Corporate Person) Regulations, 2016. The needful shall be done within three days from the date of receipt of this order by the Financial Creditor. The said amount however is subject to adjustment towards Resolution Process cost as per applicable rules. 17. We also declare moratorium in terms of Section 14 of the Code. The necessary consequences of imposing the moratorium flows from the provisions of Section 14(1)(a), (b), (c) & (d) of the Code. Thus, the following shall remain prohibited during CIRP: (a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arb....
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....rrupted during the moratorium period. In addition, as per the Insolvency and Bankruptcy Code (Amendment) Act, 2018 which has come into force w.e.f. 06.06.2018, the provisions of moratorium shall not apply to the surety in a contract of guarantee to the corporate debtor in terms of Section 14(3)(b) of the Code. 19. The Interim Resolution Professional shall perform all his functions contemplated, inter-alia, by Sections 15, 17, 18, 19, 20 & 21 of the Code and transact proceedings with utmost dedication, honesty and strictly in accordance with the provisions of the Code, Rules and Regulations. It is further made clear that all the personnel connected with the Corporate Debtor, its promoters or any other person associated with the Management....