M/s Anmol Steel Processors Private Limited

Per:

This Company Petition is filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 (“Code”) read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudication Authority) Rules, 2016 by the Corporate Applicant, seeking to initiate its own Corporate Insolvency Resolution Process (“CIRP”). The said application is being preferred by the Corporate Applicant owing to financial stress faced by it, consequent to which it is not in a position to repay the debts due to its creditors.

The Corporate Applicant was incorporated on 05.05.1994 under the Companies Act, 1956. Its Corporate Identity Number (“CIN”) is U27100MH1994PTC078196. Its registered office is at D-15, M.I.D.C, Industrial Area, Taloja Navi Mumbai, Maharashtra-410208. Therefore, this Bench has jurisdiction to entertain and decide the Petition. The Authorised share capital of the Corporate debtor is Rs. 10,00,00,000/- and paid-up capital is Rs. 9,26,06,390/-.

The company is engaged in business as processors of all types of alloys and metals (ferrous and non-ferrous) and steel conversion of coils into sheets, strips, coiling , decoiling, straightening , phosphating , galvanising ,slitting,sheaning ,packing, warehousing etc.

The name of Corporate Applicant changed to Anmol Steel Processors Private Limited from Anmol Steel and Infra Private Limited on 18.03.2015.

The Corporate Applicant submits that the Company has not been performing satisfactorily as is clear from the last one-year Balance Sheet, Audit Report and working of the company. The Corporate Applicant was suffering consistent losses and difficulty in continuing its business operation. There are Operational Creditors to whom the Corporate Debtor owes total debt amounting to default is Rs. 1,07,46,03,630.77/- (Rupees One Hundred and Seven Crore Forty-Six Lakhs Three Thousand Six Hundred Thirty and Seventy-Seven Paisa Only).

The Following are the date on which NPA was declared by the various banks:

The Corporate Applicant has produced financial Statement for the Financial year 2020-21,2021-2022 and 2022-23. These debts are duly reflected therein, thus constituting acknowledgement of debt and notes to accounts and auditor’s report appended to financial statements clearly acknowledges the default in payment of debt.

The Corporate Applicant has enclosed a copy of Special Resolution passed by the shareholders of the Company in their Extra-Ordinary General Meeting held on 04.10.2023 for initiating Corporate Insolvency Resolution Process u/s 10 of the Code.

The Board of Directors of the Corporate Applicant in their Extra-ordinary General meeting held on 04.10.2023 authorised Mr.Amar D Shah, Director of the Company to file necessary application under the Code.

Further, the Corporate Applicant has also enclosed the Audited Financial Statements for year ending 31.03.2022 to 31.03.2023 alongwith Copy of statement of assets and liabilities of Corporate Applicant as on 31.03.2023.

The Corporate Applicant has suggested the name of Mr. Vishnu Kant Kabra having Registration No. IBBI/IPA-001/IP-P02178/2021-2022/13747 for appointment as the Interim Resolution Professional (“IRP”). The proposed IRP has also submitted his Consent in Form 2 confirming eligibility and that there are no disciplinary proceedings pending against him.

This application is filed as per Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rule, 2016 in Form-6. Required information is also furnished therein.

The Bank of Baroda submits that the Applicant have committed defaults of their obligation under various agreements. The Applicant have failed and neglected to make payment of the principal, interest and other monies, in respect of the facilities granted, and when the same had fallen due. The Bank there after declared the Accounts of the Applicant as NPA.

The Bank of Baroda issued a legal notice dated 22.06.2017 calling upon the applicants to pay an amount of Rs.60,36,84,946.40/- (Rupees Sixty Crores Thirty-Six Lakhs Eighty-Four Thousand Nine Hundred and Forty-six Rupees and Forty Paisa.

Bank Further States that mortgaged properties at Factories Land and Building at Taloja Industrial Area, MIDC Raigad have been sold under SARFAESI Action for total amount is of Rs.14.25 Crore, plant and Machinery have been sold for an amount of Rs.5.12 Crore.

Bank states that Possession of Mortgaged Properties being owned by Dinesh Shah who is Chairman-cum-Managing Director and Mrs.Bindhu Dinesh Shah has been taken but could not be proceeded against further as the same belong to Guarantors and an Application Under Section 95 IBC has been filed against the Guarantor and pending before National Company Law Tribunal, Mumbai.

The Bank submits that there is an outstanding amount of Rs.131,65,42,781.73/-(Rupees One Hundred Thirty-One Crore Sixty-Five Lakhs Forty-Two Thousand Seven Hundred Eighty One and Seventy Three Paisa Only) as on 30.11.2023 with further interest, legal and other charges till date of repayment.

After hearing the submissions and upon perusing the supporting documents annexed with the Petition, this Bench is of the view that the application made by the Corporate Applicant is complete in all respects as required by law. It clearly shows that the Corporate Applicant is in default of a debt due and payable, and the default is in excess of minimum amount stipulated under section 4(1) of the IBC, at the relevant time. Therefore, the default stands established and there is no reason to deny the admission of the Petition. In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Applicant.

The above CP(IB) No. 1008 of 2023 is hereby Admitted and initiation of Corporate Insolvency Resolution Process (CIRP) is ordered against Anmol Steel Processor Private Limited.

Mr. Vishnu Kant Kabra having Registration No. IBBI/IPA-001/IP-P02178/2021-2022/13747, Email Id: ipvishnukabra@gmail.com, Mobile Number-9920241401, is hereby appointed as the IRP of the Corporate Debtor to carry out the functions as mentioned under IBC. The IRP shall carry out functions as contemplated by sections 15, 17, 18, 19, 20 and 21 of the IBC. The fee payable to IRP/RP shall be compliant with Regulations, Circulars and Directions issued by the Insolvency & Bankruptcy Board of India (IBBI) as may be applicable.

There shall be a moratorium under Section 14 of the IBC, in regard to the following:

Notwithstanding the above, during the period of moratorium: -

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 liquidation of 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 IBC read with regulation 6 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

During the CIRP Period, the management of the Corporate Debtor shall vest in the IRP or, as the case may be, the RP 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 a period of one week from the date of receipt of this Order, in default of which coercive steps will follow.

The Corporate Applicant shall deposit a sum of Rs. 1,50,000/- (Rupees One Lakh Fifty Thousand only) till the formation of Committee of Creditors plus out of pocket expenses 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).

The Registry is directed to communicate this Order to the Corporate Applicant and the IRP by Speed Post and email immediately, and in any case, not later than two days from the date of this Order.

A copy of this Order be sent to the Registrar of Companies, Mumbai, Maharashtra, 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.

Ordered accordingly.