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Judgment
Orders in CP(IB)No.165/9/HDB/2020 are pronounced vide separate sheets. In the result, this petition is allowed. Hence, corporate debtor is put into Corporate Insolvency Resolution Process (CIRP) in terms of the order of this Adjudicating Authority.
This petition is filed by M/s Techno Craft/ Operational Creditor, stating that principal amount of Rs.25,00,264/- (Rupees twenty five lacs two hundred and sixty four only) towards supply Bulk Material Handling Equipments during FY 2016-17. Hence this petition is filed under section 9 of Insolvency and Bankruptcy Code, 2016, read with Rule 6 of Insolvency & Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, seeking admission of the petition, initiation of Corporate Insolvency Resolution Process, granting moratorium and appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon.
The averments made in the petition are as follows:
The Operational Creditor is in the business of supply Bulk Material Handling Equipments.
The Corporate Debtor is in the business of supply Bulk Material Handling Equipments, Wire Drawing Machines and spares, fabrication and machining, etc.
Based on the Work Order placed by the Corporate Debtor, the Operational Creditor had manufactured and supplied, during 2016-17, special purpose machinery to the Corporate Debtor, vide ledger copies placed at ANNEXURE-3, towards which an amount of Rs.25,00,264/-is due and payable to the Operational Creditor by the Corporate Debtor. Relevant statement is at ANNEXURE-4.
Demand Notice in Form-3 dated 24.01.2020 (ANNEXURE-5) was issued by the Operational Creditor, which was served on the Corporate Debtor. Acknowledgement is at ANNEXURE-6.
It is pertinent to note that vide order dated 15.03.2021 the Corporate Debtor was set ex parte. Vide order dated 07.07.2021, this Tribunal had directed the Corporate Debtor to file an application under Rule 49 of the NLCT Rules along with counter. Vide subsequent order dated 27.08.2021, though it was recorded that application was filed by the Corporate Debtor for setting aside order by which the Corporate Debtor was set ex parte along with counter, neither such application nor counter was received in the Registry.
Heard the Counsel for Operational Creditor and Counsel for Corporate Debtor. Since the Corporate Debtor has admitted the debt and requested to pass appropriate orders as recorded in order dated 09.12.2021, we proceed to examine the averments made in the application and the record produced.
It is the case of the petitioner herein that based on the Work Order placed by the Corporate Debtor, the Operational Creditor had manufactured and supplied, during 2016-17, special purpose machinery to the Corporate Debtor. Relevant ledger copies are placed at ANNEXURE-3, and statement of amount claimed is at ANNEXURE-4.
Despite reminders to pay the outstanding amount towards supply of the above goods and Demand Notice issued by the Operational Creditor to the Corporate Debtor, the Corporate Debtor has failed to reply and pay the amount outstanding.
It is noted that the claim amount is more than Rs.1 lac and the application was filed before Notification dated 24.03.2020 issued by the Ministry of Corporate Affairs. Thus, the application is maintainable.
We have gone through the petition filed by the operational creditor and the documents filed on record and considered the oral submissions of the learned counsels for both the sides. As stated above the operational creditor has also filed copies of various documents including ledger statements and the Bank account of the Operational Creditor evidencing that the Operational Creditor has not received any amount from the Corporate Debtor. Over and above the Corporate Debtor has admitted the debt as recorded in order dated 09.12.2021.
We are, therefore, of the opinion that the present petition needs to be admitted under section 9 of the IB Code.
Hence, the Adjudicating Authority admits this Petition under Section 9 of IBC, 2016, declaring moratorium for the purposes referred to in Section 14 of the Code, with following directions: -
Corporate Debtor, M/s G.R. Cables Limited is admitted in Corporate Insolvency Resolution Process under section 9 of the Insolvency & Bankruptcy Code, 2016, (B) The Bench hereby 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 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 possession of the corporate Debtor;
That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. (D) Notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, concessions, clearances or a similar grant or right during the moratorium period.
That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
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 or passes an order for liquidation of Corporate Debtor under Section 33, whichever is earlier.
That the public announcement of the initiation of Corporate Insolvency Resolution Process shall be made immediately as prescribed under section 13 of Insolvency and Bankruptcy Code, 2016.
That this Bench hereby appoints Shri Maligi Madhusudhana Reddy having IBBI Registration No. IBBI/ IPA- 001/ IP- P00843/ 2017-2018/ 11427, e-mail: mmreddyandco[at]gmail[dot]com, as Interim Resolution Professional to carry the functions as mentioned under the Insolvency & Bankruptcy Code. He has filed Form-2 and also Form-B- Authorisation for Assignment issued by Indian Institute of Insolvency Professionals of ICAI (IIIPI) dated 30.11.2021. His AFA is valid from 30.11.2021 to 29.11.2022. Thus, there is compliance of Regulation 7A of IBBI (Insolvency Professionals) Regulations, 2016, as amended. Therefore, the proposed IRP is fit to be appointed as IRP since the relevant provision is complied with.
Accordingly, this Petition is admitted.
Registry to send a copy of this order to the Registrar of Companies, Hyderabad for appropriately changing the status of Corporate Debtor herein on the MCA-21 site of Ministry of Corporate Affairs.