M/s Reliance Home Finance Limited vs M/s Starlite Infracon Private Limited

Per Virendra Kumar Gupta, Member (T)

The facts, in brief, are that a sum of Rs. 4.5 crores as given by the Financial Creditor to the Corporate Debtor on 31.12.2015. A Loan Agreement had also been entered into. The said loan was repayable on 31.12.2016. The Corporate Debtor initially made some payments, however, from August 2016, payments were not made. In July 2016 payment to the tune of Rs. 18,73,374/- and Rs. 39,54,732/- were received.

The Ld. Counsel appearing on behalf of the Financial Creditor narrated the facts and submitted that there was admitted debt which was due and payable and the Corporate Debtor had committed default and thus, the application was liable to be admitted.

In the reply by the Corporate Debtor it has been submitted that the loan was provided originally by Reliance Capital and this fact has not been brought on record. It has also been claimed that the application was therefore, an abuse of the process of law as a solvent company could not be pushed into Resolution Process or winding up.

We have considered the submissions made from both sides and have also carefully perused the material on record. The fact of disbursement of loan is clearly evident from the statement of bank account attached herewith. The Loan Agreement is also attached and final due date for payment is 31.12.2016. Payments have been made up to July 2016. Post dated cheques given by the Corporate Debtor have been bounced. These facts establish the case for the Financial Creditor. We further find that the Financial Creditor is an entity coming out of the original lender, hence there is no merit in the plea of Corporate Debtor as regards to maintainability of the application on this count.

The application is otherwise complete and defect free.

Name of the IRP has been proposed, which is approved by us. We admit the application and order as under :

The application filed by the Financial Creditor under section 7 of the Insolvency & Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the Corporate Debtor, M/s Starlite Infracon Pvt. Ltd., is hereby admitted.

ii) We declare a moratorium and public announcement in accordance with Sections 13 and 15 of the IBC, 2016.

iii) Moratorium is declared for the purposes referred to in Section 14 of the Insolvency & Bankruptcy Code, 2016. The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for the submission of claims under Section 15. The public announcement referred to in clause (b) of sub-section (1) of Section 15 of Insolvency & Bankruptcy Code, 2016 shall be made immediately.

iv) Moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016 prohibits the following:

The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, 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 (54 of 2002);

The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.

The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated, suspended, or interrupted during moratorium period.

vi) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

vii) The order of moratorium shall have effect from the date of admission till the completion of the corporate insolvency resolution process.

viii) Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of corporate debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be.

ix) Necessary public announcement as per Section 15 of the IBC, 2016 may be made.

Mr. Niraj Kumar Agarwal, IP Registration No. IBBI/IPA-001/IP-P00949/2017-2018/11569, residing at Swastik Apartment, 334/157, Jessore Road, Flat No.3H, Kolkata 700089 E-mail ID: [email protected] is appointed as Interim Resolution Professional for ascertaining the particulars of creditors and convening a Committee of Creditors for evolving a resolution plan.

xi) The Financial Creditor to pay sum of Rs. 50,000/- (Rupees Fifty Thousand Only) to IRP as advance fees as per Regulation 33(2) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulation 2016 which shall be adjusted from final bill.

xii) The Resolution Professional shall conduct CIRP in time bound manner as per Regulation 40A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulation, 2016.

xiii) Registry is hereby directed under section 7(7) of the I.B.Code, 2016 to communicate the order to the Financial Creditor, the Corporate Debtor and to the I.R.P. by Speed Post as well as through e-mail.

List the matter on 30.04.2020 for the filing of the progress report.Certified copy of the order may be issued to all the concerned parties, if applied for, upon compliance with all requisite formalities.