M/s. Krishnaa Energy Private Limited

Per: S. VIJAYARAGHAVAN, MEMBER (TECHNICAL)

Under Consideration is an Insolvency & Bankruptcy Application filed u/s 10 of The Insolvency & Bankruptcy Code, 2016 (“the Code”) by M/s. Krishnaa Energy Private Limited (in short, “the Corporate Applicant”) for initiation of Corporate Insolvency Resolution Process (in short “CIRP”) under Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity, 'IB Rules 2016), following a default in meeting its financial obligations to its Financial Creditors as shown in the Company Application.

On perusal of this Application, the total default amount claimed has been mentioned as ₹50,89,62,950. The breakup of the aforesaid default consolidated statement of dues as given by Corporate Applicant is as follows:

In compliance of Annexure-III, this Corporate Applicant has filed written communication dated 16.10.2019 given by the Insolvency Professional as contemplated in Form-2 of the IBC, 2016, the Applicant has filed audited financial statements for the year ended 31.03.2017 and 31.03.2018 and provisional financial statements from 01.04.2019 to 15.10.2019 reflecting the default of payment to the Financial Creditors, Operational Creditors, assets and liabilities of the Applicant, and other documents evidencing creation of charge over the assets of the Corporate Applicant. A special resolution was passed by the shareholders of the Corporate Applicant on 12.10.2019 approving the initiation of Corporate Insolvency Resolution Process under Section 10 of the Insolvency & Bankruptcy Code, 2016.

The learned counsel for Respondent (Canara Bank) submitted that the Respondent has filed O.A. No.575 of 2015 before Hon'ble DRT-II, Chennai against the Corporate Applicant herein (M/s. Krishnaa Energy Pvt. Ltd.) and obtained final order on 25.01.2019 stating that as per the Demand Notice dated 26.06.2019, the Applicant/Corporate Debtor is liable to pay a sum of Rs.24,73,19,386.40. Consequently, the Respondent has got first charge / mortgage in and over the entire factory land, building, plant and machinery belonging to the Corporate Applicant for the purpose of recovery of the decreed debt as aforementioned. It is further submitted that the above application has been filed with the ulterior motive to sabotage the measures for recovery initiated by the respondent both under the provisions of the SARFAESI Act and RDB Act.

With regard to points raised by the Respondent (Canara Bank) in their counter affidavit vide para 12 (a) and (b), existence of debt and default committed by the Corporate Applicant has been detailed in the application. In response to para 12(c) and (d), a Special Resolution was passed by the shareholders of the Applicant/Corporate Debtor at their Extra-Ordinary General Meeting (EoGM) held on 12.10.2019 approving the initiation of Corporate Insolvency Resolution Process under Section 10 of the Insolvency & Bankruptcy Code, 2016. The Corporate Applicant declared in the present application that they have not been disqualified under Section 11 of the Code. With regard to queries in para 12 (g) and (h), the Respondent has not adduced any reason as to why this application is to be dismissed because of delays or latches on the part of Corporate Applicant.

In view of the fact that all the requirements as stipulated under Insolvency and Bankruptcy Code, 2016 and the regulations framed there under have been fulfilled, there is no option for this Tribunal but to admit the application filed by Corporate Applicant for commencing Corporate Insolvency Resolution Process (CIRP).

The Corporate Applicant namely, M/s. Krishnaa Energy Private Limited has made a submission that in case, the Financial Creditors propose to replace the IRP recommended for appointment, they may do so in the First Meeting of the CoC to be convened by the IRP. The IRP may include this item as one of the Agenda in the First Meeting of the CoC.

On perusal of records and documents produced by the Applicant/Corporate Debtor, we are of the view that this Company application is a fit case for admission u/s 10 of the Code since the Interim Resolution Professional (IRP) has already expressed his consent to be appointed as Interim Resolution Professional (IRP), this Bench hereby appoints Mr. B. Ramana Kumar as IRP by admitting this Company Application with directions as follows:

Accordingly, this IBA/1075/2019 is hereby admitted.

The Registry is hereby directed to immediately communicate this order to the Corporate Applicant and the Interim Resolution Professional by way of e-mail.