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Judgment
This matter was not on Board today and was taken upon mentioning by Ld. Authorized Representative for the IRP.
There was some error in the Order with regard to “CP Year 2023” should be corrected as “CP Year 2024”.
Rest of the Order shall remain unchanged.
ORDER
Per: D. Arvind, Member (Technical):
The Court congregated through hybrid mode.
This is a Company Petition under section 9 of the Insolvency and Bankruptcy Code, 2016 (herein after referred as “the Code” or “IBC”) by Ganpati Enterprises, hereinafter referred to as “Operational Creditor” seeking to initiate Corporate Insolvency Resolution Process (“CIRP”) against Globe Steel and Alloy Private Limited, hereinafter referred to as “Corporate Debtor”.
Brief facts of the case:
The applicant had supplied sponge iron to the Corporate Debtor in terms of specifications provided by the Corporate Debtor against various orders placed and demanded by the Corporate Debtor from the year 2018.
It has been claimed by the applicant that 14 invoices as detailed in page number 31 of this application, remains unpaid. The Excel sheet contain invoices wise details date of supply, mode of transportation, the amount involved etc. The copy of the same is extracted and reproduce the same for convenience.
The details of invoices which are pending to be paid starts from the date 26.09.2023 and ends on 31.10.2023. Since the amount involved is Rs. 1.67 crore this application has been filed under section 9 of the Code.
From the records we see that corporate debtor never appeared in this matter, even after several opportunities. When the matter was posted on 18.09.2024 , We passed an order as under:
“In the event, none turns up to date on behalf of the Corporate Debtor, appropriate orders would be passed.” Since no one appears for the Corporate Debtor, even today when the matter was posted for hearing, we proceeded hear the counsel for the applicant to pass order based on the records that made available to this Tribunal.
Ld. Counsel for Applicant:
Ld. counsel for the applicant relying on page no 31 of the application which contain details of invoices that are pending to be paid, submits that the default amount is of Rs. 1.67 core which includes approximately Rs. 15 lakhs as interest. He also placed the notice issued under section 8 of IB Code dated 30.03.2024 which has been annexed in page 25 to 30 of this application. He submits that no reply has been received to this notice. He also pointed out that the corporate debtor had confirmed the amount in default through his email dated 19.04.2024 which is at page 104 of this application. For the purpose of reference, the same is extracted and reproduced herein:
Analysis and Findings:
We find that there has been a debt of more than Rs. 1,51,93,984.74/- which is the amount payable for supply of goods by Operational Creditor to Corporate Debtor. This amount does not include interest and amount that is due and payable has been confirmed by the corporate debtor though his email dated 19.04.2024 as stated above. While no proof of notice of section 8 has been placed on record, we acknowledge the confirmation of the corporate debtor about the outstanding debt by its email dated 19.04.2024.
In view of the above we find that this is a fit case for admitting the corporate debtor into CIRP under section 9 of the Code. It is, accordingly, hereby ordered as follows:-
The application bearing C.P. (IB) 137/KB/2023 filed by Ganpati Enterprises (Operational Creditor), under section 9 of the Code read with rule 6 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP against Globe Steel and Alloy Private Limited (CIN : U27100JH2004PTC010797), the Corporate Debtor, is admitted.
There shall be a moratorium under section 14 of the IBC.
The moratorium shall have effect from the date of this order till the completion of the CIRP or until this Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 of the IBC or passes an order for liquidationof Corporate Debtor under section 33 of the IBC, as the case may be.
Public announcement of the CIRP shall be made immediately as specified under section 13 of the Code read with regulation 6 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for CorporatePersons) Regulations, 2016.
Mr. Raj Singhania, having registration number IBBI/IPA-001/IP-P00188/2017-18/10367, email: [email protected] is hereby appointed as Interim Resolution Professional (IRP) of the Corporate Debtor to carry out the functions as per the Code subject to submission of a valid Authorisation of Assignment in terms of regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016.
The fee payable to IRP or the RP, as the case may be, shall be compliant with such Regulations, Circulars and Directions as may be issued by the Insolvency & Bankruptcy Board of India (IBBI). The IRP shall carry out his functions as contemplated by sections 15, 17, 18, 19, 20 and 21 of the Code.
During the CIRP period, the management of the Corporate Debtor shall vest in the IRP or the RP, as the case may be, in terms of section 17 of the IBC. The officers and managers of the Corporate Debtor shall provide all documents in their possession and furnish every information in their knowledge to the IRP within one week from the date of receipt of this Order, in default of which coercive steps will follow.
The IRP/RP shall submit to this Adjudicating Authority periodical reports with regard to the progress of the CIRP in respect of the Corporate Debtor.
The Operational Creditor shall initially deposit a sum of Rs. 300000/- (Rupees three lakh only) with 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). Further, the Fees of the IRP will be subject to the approval of the COC in accordance with Notification No. IBBI/2022- 23/GN/REG091 dated 13.09.2022, issued by the Insolvency and Bankruptcy Board of India, as published in the in the Official Gazette.
In terms of section 7(5)(a) of the Code, Court Officer of this Court is hereby directed to communicate this Order to the Operational Creditor, the Corporate Debtor and the IRP by Speed Post, email and WhatsApp immediately, and in any case, not later than two days from the date of this Order.
Additionally, the Operational Creditor shall serve a copy of this Order on the IRP and on the Registrar of Companies, West Bengal, Kolkata by all available means for updating the Master Data of the Corporate Debtor. The said Registrar of Companies shall send a compliance report in this regard to the Registry of this Court within seven days from the date of receipt of a copy of this order.
CP (IB) No. 137/KB/2023 come up on 10.01.2025 the progress report.
A certified copy of this order may be issued, if applied for, upon compliance with allrequisite formalities.