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Judgment
O R D E R
Per: Prabhat Kumar, Member (Technical)
This is a Company Petition filed on 09.05.2020 by 9Planets Products Private Limited, (“Corporate Applicant”) under Section 10 of the Insolvency & Bankruptcy Code, 2016 (“the Code”) read with Rule 7 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016 for initiation of Corporate Insolvency Resolution Process (CIRP) of the Corporate Applicant company.
The Corporate Applicant submits that its registered office is at 38, Mittal Chambers, Nariman Point, Mumbai, Maharashtra – 400 021, incorporated on 22.02.2012 vide CIN: U25200MH2012PTC227312 on the file of Registrar of Companies Maharashtra, having paid up share capital of Rs.3,70,00,000/-.
The Shareholders of the Corporate Debtor in their EOGM held on 28.01.2020 approved initiation of CIRP u/s 10 of IBC and authorised Mr. Shekhar Parab, Director of the Company, to represent the Company before the NCLT or any other authority and to sign, execute any documents, engage any professional and file necessary application before NCLT under the Code.
The Corporate Debtor has disclosed that a sum of ₹47.32 crores is due to Financial and Operational Creditors which is in default.
The Corporate Debtor has enclosed the audited financial statements for the years from 2016-17 to 2018-19 and the provisional financial statement for the period from 01.04.2019 to 31.03.2020 and list of creditors as on 31.03.2019. Corporate Debtor has disclosed assets of the Corporate Debtor as on 31.03.2019. The Corporate Debtor also disclosed the names and addresses of the members of the Company.
The Corporate Debtor has enclosed Notice dated 13.10.2017 received u/s 13(2) of SARFAESI.
The Corporate Applicant has proposed Mr. Manoj Kumar Mishra having address at Room No. 1406, Building 4B, New Hind Mill MHADA Sankul, Ram Bhau Bhogle Marg, Ghodapdev, Mumbai – 400033, e-mail ID: [email protected], having Registration No. IBBI/IPA-001/IP-P01152/2018-2019/11902, as Interim Resolution Professional (IRP), who has given his consent with a declaration that no disciplinary proceedings are pending against him by Form 2.
The Court Notice, vide order dated 01.11.2022 was ordered for service upon the Secured, Unsecured Creditors and RoC by all available means, and the Corporate Applicant served the notice. The Counsel for the Financial Creditor Ms. Raina Birla and Mr. Chitanya Nikte appeared from time to time.
On hearing the Counsel and perusal of the Petition and the supporting documents annexed with the petition, this Bench is of the considered view that the Corporate Debtor has committed default and the petition contains the particulars required u/s 10 of the Code. In view of this, this Bench hereby orders initiation of Corporate Insolvency Resolution Process against Corporate Debtor under Section 10 of the Code and declares moratorium with consequential directions as mentioned below:
That this Bench hereby prohibits 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; transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; 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; the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor.
That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period.
That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
That the order of moratorium shall have effect from 09.05.2023 till the completion of the Corporate Insolvency Resolution Process or until this Bench approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of Corporate Debtor under Section 33, as the case may be.
That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under Section 13 of the Code.
That this Bench hereby appoints Mr. Manoj Kumar Mishra, having Registration No. IBBI/IPA-001/IP-P01152/2018-2019/11902, as Interim Resolution Professional (IRP) to conduct the functions as mentioned under Insolvency & Bankruptcy Code.
The Directors of the Corporate Applicant shall ensure that sufficient fund is made available to the IRP to meet the expenses arising out of issuing public notice and inviting claims. These expenses are subject to approval by the Committee of Creditors (CoC). It is clarified that money so deposited by the directors shall be paid in priority.
Accordingly, this Petition [CP(IB)-1120(MB)/2020] is hereby admitted.
The Registry is hereby directed to communicate this order to the Applicant. A copy of this Order be sent to the Registrar of Companies, Maharashtra, Mumbai, for updating the Master Data of the Corporate Debtor.