TaxTMI 
TaxTMI 
2022 (12) TMI 1179
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....ssued public announcement on 15.01.2021 calling upon the stockholders to file their claims along with supporting documentary evidence. Subsequently, Sri Surendra Kumar Agarwal was substituted by a new Liquidator namely, Krishna Kumar Chhaparia, on the basis of the announcement of the Liquidator, the plaintiff has also raised claim but initially the Liquidator had rejected the claim of the plaintiff and being aggrieved with the said order of the Liquidator, the plaintiff had preferred an appeal and accordingly the National Company Law Appellate Tribunal had allowed the appeal of the plaintiff and accordingly the defendant no. 1 has filed his claim before the Liquidator. Now, the plaintiff submits that as the Liquidator has been appointed by the NCLT and as such by deleting the name of the defendant no. 1, the name of the Liquidator is to be substituted in place of defendant no. 1. Perused the application, order passed by the NCLT and other documents. Admittedly, a Liquidator has been appointed in place of the defendant no. 1, and the defendant no. 1 had also filed his claim before the Liquidator and thus this Court finds that the prayer made by the plaintiff is required to be ....
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....ndant company namely, JM Finance Assets Reconstruction Company Ltd. had filed an insolvency petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against the defendant before the National Company Law Tribunal being CP (IB) 1178 (KB) 2018. On admission of the Company Petition corporate insolvency resolution process was commenced against the defendant company but was not successful and accordingly the Tribunal had appointed one Shri Surendra Kumar Agarwal as the Liquidator in respect of the defendant company. The Liquidator had circulated a public announcement dt. 15th January, 2021 calling upon all the stock holders of the defendant company to submit their respective claims. In the mean time, the Tribunal had replaced Shri Surendra Kumar Agarwal and appointed the petitioner herein as liquidator of the defendant company. On 20th May, 2022, the plaintiff being one of creditor has filed his proof of claim before the Liquidator and the claim made by the plaintiff before the Liquidator is same transaction with the plaintiff has claimed in the present suit. Initially the Liquidator has rejected the claim of the plaintiff on the ground of time barred and being ag....
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....corporate debtors, where the minimum amount of default is rupees one lakh. Sections 6, 7 and 8 form part of one scheme and are very important for the decision in the present case. They read as follows: "6. Persons who may initiate corporate insolvency resolution process.-Where any corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate corporate insolvency resolution process in respect of such corporate debtor in the manner as provided under this Chapter. 7. Initiation of corporate insolvency resolution process by financial creditor.-(1) A financial creditor either by itself or jointly with other financial creditors may file an application for initiating corporate insolvency resolution process against a corporate debtor before the adjudicating authority when a default has occurred. Explanation.-For the purposes of this sub-section, a default includes a default in respect of a financial debt owed not only to the applicant financial creditor but to any other financial creditor of the corporate debtor. (2) The financial creditor shall make an application under sub-section (1) in s....
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....r shall, within a period of ten days of the receipt of the demand notice or copy of the invoice mentioned in sub-section (1) bring to the notice of the operational creditor- (a) existence of a dispute, if any, and record of the pendency of the suit or arbitration proceedings filed before the receipt of such notice or invoice in relation to such dispute; (b) the repayment of unpaid operational debt- (i) by sending an attested copy of the record of electronic transfer of the unpaid amount from the bank account of the corporate debtor; or (ii) by sending an attested copy of record that the operational creditor has encashed a cheque issued by the corporate debtor. Explanation.-For the purposes of this section, a "demand notice" means a notice served by an operational creditor to the corporate debtor demanding repayment of the operational debt in respect of which the default has occurred." 21. Section 12 provides for a time-limit for completion of the insolvency resolution process and reads as follows: "12. Time-limit for completion of insolvency resolution process.- (1) Subject to sub-section (2), the corporate ins....
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....nating 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 Securitisation 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. (2) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period. (3) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. (4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process: Provided that where at any time during the corporate insolvency resolution process period, if the adjudicating authority approves the resolution plan....
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....oved by a vote of not less than 75% of the voting share of the financial creditors and the adjudicating authority is satisfied that the plan, as approved, meets the statutory requirements mentioned in Section 30, that it ultimately approves such plan, which is then binding on the corporate debtor as well as its employees, members, creditors, guarantors and other stakeholders. Importantly, and this is a major departure from previous legislation on the subject, the moment the adjudicating authority approves the resolution plan, the moratorium order passed by the authority under Section 14 shall cease to have effect. The scheme of the Code, therefore, is to make an attempt, by divesting the erstwhile management of its powers and vesting it in a professional agency, to continue the business of the corporate body as a going concern until a resolution plan is drawn up, in which event the management is handed over under the plan so that the corporate body is able to pay back its debts and get back on its feet. All this is to be done within a period of 6 months with a maximum extension of another 90 days or else the chopper comes down and the liquidation process begins." In the instant ....