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Judgment
ORAL ORDER
The present petition has been preferred under Section 7 (1) and (2) of the IBC, 2016 initiating the CIRP qua the Corporate Debtor viz. GRJ Distributions and Developers Pvt. Ltd.
During the course of the hearing, the Ld. Counsel for the Petitioner clarified that the CP IB-477/ND/2021 has already been admitted qua the GRJ Distributions Pvt. Ltd., but the same is in respect of a different project namely Avalon Rosewood Project.
He submitted that, the present petition has been preferred qua Avalon Royal Park. The particulars of debt and default are given in Part-IV of the application which reads thus: -
As can be seen from the provisions of Section 7 (3) of IBC, 2016 along with an applications preferred under Section 7(1) of the IBC, 2016. The financial creditor need to enclose inter alia, the record of default recorded with the information utility and also furnish the name of the resolution professional proposed as IRP.
While passing the order under clause (a) of subsection (5) of Section 7, this Tribunal need to be satisfied that a default as occurred and the Application under sub-section-2 is complete and there is no disciplinary proceeding pending against the proposed resolution professional. Clause (a) of sub-section-5 and Section 7 reads thus: -
“Section 7: Initiation of corporate insolvency resolution process by financial creditor.
……………
(5)Where the Adjudicating Authority is satisfied that—
(a)a default has occurred and the application under sub-section (2) is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application; or
During the course of the hearing, the Ld. Counsel for the corporate debtor conceded the plea raised in the application preferred under Section 7(1) and (2) of the Code.
Nevertheless, the Ld. Counsel for the Petitioner could also draw our attention to the NeSL report. The report of default issued by NeSL, (Form-D) reads thus: -
In Para-III of the application, the applicant has given the particulars of the IP proposed to be appointed as IRP. Part III of the application reads thus: -
The applicant has also annexed with the application, the consent given by the IP for being appointed as IRP, in Form 2. In the consent given by him, the IP as declared that no disciplinary proceeding are pending against him with the Board or with the ICSI Institute of Insolvency Professionals. The clause IV of the Form 2 consent form furnished by IP reads thus: -
“………
(iv)certify that there are no disciplinary proceedings pending against me with the Board or ICSI Institute of Insolvency Professionals”
Indubitably, the amount of default is more than one crore, and the threshold limit specified in Section 4 of the code is duly met. In the wake of the aforementioned, we have no other option but to admit the present petition. Ordered accordingly.
In the wake, moratorium provided under Section 14 of IBC, 2016 is declared qua the CD and as a necessary consequence thereof the following prohibitions are imposed, which must be followed by all and sundry:
The institution of suits or continuation of pending suits or proceedings against the Respondent 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 Respondent 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 Respondent in respect of its property including any action under the Securitization 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 Respondent.
As proposed by the Petitioner Mr. Harish Taneja having Registration No. IBBI /IPA-002/IPN00088/2017-18/10229 & email harishtaneja78@gmail.com is appointed as IRP, subject to the condition that no disciplinary proceeding is pending against him and disclosures as required under IBBI Regulations, 2016 are made by him within a period of one week from this Order.
It is further ordered that Mr. Harish Taneja shall take charge of the CIRP of the Corporate Debtor with immediate effect and would take steps as mandated under the IBC specifically under Section 15, 17, 18, 20 and 21 of IBC, 2016 read with extend provisions of IBBI (Insolvency Resolution of Corporate Persons) Regulations, 2016.
The Petitioner is directed to deposit Rs. 2,00,000/- only with the IRP to meet the immediate expenses. The amount, however, will be subject to adjustment by the Committee of Creditors as accounted for by Interim Resolution Professional and shall be paid back to the Financial Creditor.
A copy of this Order shall immediately be communicated by the Registry/Court Officer of this Tribunal to the Petitioner/Financial Creditor, the Respondent/Corporate Debtor and the IRP mentioned above.
In addition, a copy of this Order shall also be forwarded by the Registry/Court Officer of this Tribunal to the IBBI for their records.