TaxTMI 
TaxTMI 
2022 (8) TMI 544
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....ation to Adjudicating Authority) Rules, 2016 for initiation of Corporate Insolvency Resolution Process (hereinafter referred to as 'CIRP') against M/s. Sadhna Communications Pvt. Ltd. for the alleged default on the part of the Respondent in settling an amount of Rs. 1,15,95,049 (Rupees One Crore Fifteen Lakh Ninety Five Thousand and Forty Nine). The details of transactions leading to the filing of this application as averred by the Applicant are as follows: i. That the Corporate Debtor through its Director, Mr. Arpan Gupta, approached the Financial Creditor and requested them to give business loan of Rs. 1,11,00,000. The Financial Creditor considered the request made by Corporate Debtor and disbursed the business loan of Rs....
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....the Respondent filed its reply in which the following contentions were made: i. That the Respondent availed the debts in the form of loan from the Financial Creditor for running the business and executed the loan agreement dated 17.09.2021 for the period of 3 months for an amount of Rs. 1.11 crore @ 9% per annum. ii. That the business of the Respondent was running in loss and due to such financial crises, the Respondent requested to extend the time period of loan and the same was extended by the Financial Creditor for 15 days. iii. That for smooth running of the business, the Respondent availed such loan from the Financial Creditor due to dire need and executed the aforesaid loan agreement dated 17.09.2021 for 3 m....
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.... made by the counsels. The Applicant has claimed the default on part of the Respondent for the Loan amount of Rs. 1,15,95,049 (Rupees One Crore Fifteen Lakh Ninety Five Thousand and Forty Nine). 4. In daily order dated 02.06.2022, it was noted as follows, "the counsel for the Corporate Debtor has submitted that as per the instructions of the Corporate Debtor, the claim is admitted." 5. Mere plain reading of the provision under section 7 of IBC and decision (supra) shows that in order to initiate CIRP under Section 7 the Applicant is required to establish that there is a financial debt and that a default has been committed in respect of that financial debt. 6. In the light of the aforesaid facts, we find that the documents submitted....
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....Code mandate that the Resolution Professional proposed by the Financial Creditor shall be appointed as the Interim Resolution Professional (IRP) by the Adjudicating Authority (Tribunal) if no disciplinary proceedings are pending against him. Rule 9(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, require the proposed Interim Resolution Professional to make a declaration in Form 2 confirming his eligibility to be appointed as a Resolution Professional as well as a declaration confirming that no disciplinary proceedings are pending against him in the Insolvency and Bankruptcy Board or elsewhere. The proposed Interim Resolution Professional Mr. Manoj Kulshrestha has submitted the declaration in Form 2 da....
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.... 16. 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 prohibitions are imposed: "(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, arbitration panel or other authority; (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 debt....