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Judgment
ORDER
Mr. Yahya Batatawala a/w Mr. Lokesh Malik, Ld. Counsel for the Petitioner present. Mr. Vasant Kumar, Ld. Counsel for the Corporate Debtor present.
This is an application being C.P. (IB) No. 465/NCLT/MB/C-IV/2023 filed by Kausar Textile Private Limited, the Financial Creditor/Applicant, under section 7 of Insolvency & Bankruptcy Code, 2016 (I&B Code) for initiating Corporate Insolvency Resolution Process (CIRP) in the matter of Vidhant Realty Private Limited, Corporate Debtor.
The Application is filed by Mr. Satyanarayan Ram, authorized by the Financial Creditor vide Board Resolution dated 21.05.2022, claiming amount in default amounting to Rs.4,78,20,080/- (Rupees Four Crore, Seventy Eight Lakh, Twenty Thousand and Eighty only) inclusive of interest as on 03.07.2022.
The date of Default is stated as “03.04.2021 & 22.11.2021” in Part-IV of the Petition.
The Case of the Financial Creditor is as follows:
M/s. Kausar Textile Pvt. Ltd., the Financial Creditor, provided financial assistance of Rs. 60,80,100/- and Rs. 1,22,50,000/-, total amounting to Rs 1,83,30,100/- (Rupees One Crore Eighty-Three Lakhs Thirty Thousand One Hundred only) to the Corporate Debtor. The amounts advanced to M/s. Vidhant Realty Pvt. Ltd. were payable on due dates along with cumulative interest as per terms and conditions covered in Demand Promissory Notes duly executed by the Corporate Debtor.
The Corporate Debtor despite vigorous follow up and several correspondences including issuing Demand Notice failed to pay the due amount of Rs. 4,78,20,080/- inclusive of interest @ 20% p.a (quarterly compounding) and overdue interest @2% p.a. from the date of default till 03/07/2022.
The Corporate Debtor has filed the reply dated 01.08.2023 alleging materials suppression; in sufficiency of stamps on the loan and security documents and the allegation of the attempt of recovery than the resolution. Ld. Counsel for the Corporate Debtor appeared and informed the Bench that there is no dispute on the amount debt due and default in payment thereof.
We have heard the Ld. Counsel for both sides and perused the materials available on record. We find there is no dispute as regards the Financial Debt being due and in default. The defence of suppression and insufficiency of stamps is merely a bald statement, and no evidence has been placed on record to substantiate the same. Further, the Corporate Debtor has not demonstrated how the present proceedings are in the realm of recovery proceedings. In view of this, we find that present Petition deserves to be allowed and the Corporate Debtor be admitted into Corporate Insolvency Resolution Process.
ORDER
This Application being C.P. (IB) No. 465/NCLT/MB/C-IV/2023 filed by Kauser Textile Private Limited, the Financial Creditor/Applicant, under section 7 of Insolvency & Bankruptcy Code, 2016 (I&B Code) against M/s Vidhant Realty Private Limited, Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP) is admitted. We further declare moratorium u/s 14 of I&B Code with consequential directions as mentioned below:
I. That this Bench as a result of this 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 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 possession of the corporate debtor.
II. That the supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted during the moratorium period.
III. That the provisions of sub-section (1) of Section 14 of I&B Code shall not apply to
a. such transactions as may be notified by the Central Government in consultation with any financial sector regulator;
b. a surety in a contract of guarantee to a Corporate Debtor.
IV. That the order of moratorium shall have effect from the date of this order till the completion of the corporate insolvency resolution process or until this Bench approves the resolution plan under sub-section (1) of section 31 of I&B Code or passes an order for the liquidation of the corporate debtor under section 33 of I&B Code, as the case may be.
V. That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under section 13 of I&B Code.
VI. That this Bench appoints Mr. Modilal Dhanraj Pamecha, a registered insolvency resolution professional having Registration Number [IBBI/IPA-001/IP-P01231/2018-2019/12127], email-camodilalpamecha@gmail.com as Interim Resolution Professional to carry out the functions as mentioned under I&B Code, the fee payable to IRP/RP shall comply with the IBBI Regulations/Circulars/Directions issued in this regard.
The Financial Creditor shall deposit a sum of Rs.5,00,000/-(Rupees five 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).
A copy of this Order be sent to the Registrar of Companies, Maharashtra, Mumbai, for updating the Master Data of the Corporate Debtor.
The Registry is directed to immediately communicate this order to the Financial Creditor, the Corporate Debtor and the Interim Resolution Professional even by way of email or WhatsApp. Compliance report of the order by Designated Registrar is to be submitted today.