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Judgment
This Application is filed by M/s. PPG Asian Paints Private Limited (“hereinafter referred to as Financial Creditor”) seeking initiation of Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Coastal Automobiles Private Limited (“hereinafter referred to as Corporate Debtor”) alleging that the Corporate Debtor committed default in making payment to the Financial Creditor in view of the invoices raised by them upon the Corporate Debtor, by invoking under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
The Financial Creditor is a Private Limited Company, registered and incorporated under the Provisions of Indian Companies Act, 1956. The Financial Creditor is a joint venture company of PPG Inc of USA and Asian Paints Ltd., and is carrying business of supply of automotive refinish coating products, Deltron Global Refinish System, etc. The Corporate Debtor is a Private Limited Company registered and incorporated under the Provisions of Companies Act, 2013, engaged in the business of automotive sales, servicing and repair work etc.,
It is submitted that the Corporate Debtor approached the Financial Creditor for financial contribution, for the purpose of sales promotion and procurement of specialised painting equipment for development and up-promotion of automotive painting facilities. In view of the same, an Agreement was executed between the Financial Creditor and the Corporate Debtor on 04.06.2013, that in terms and conditions of the said agreement, a financial contribution to the tune of Rs.4,00,000/- was made by the Financial Creditor to the Corporate Debtor. As per the agreement, security was given by the Corporate Debtor to the Financial Creditor for breach of obligations if any. It is noteworthy that the Corporate Debtor issued a demand promissory note for an amount of Rs.4,00,000/- along with interest @12% p.a. as a collateral security.
The Financial Creditor issued demand notice dated 18.12.2018 to the Corporate Debtor. But the Corporate Debtor did not issue any reply to the said demand notice. Neither was any payment made towards the demanded debt.
I heard the counsel for the Financial Creditor and perused the averments made in the Petition as well as the documents annexed to the Petition. It is evident that the Corporate Debtor did not respond to the notice of demand issued by the Financial Creditor. The Corporate Debtor did not file counter inspite of granting several adjournments. By virtue of order dated 03.12.2020, the Tribunal forfeited the right of the Corporate Debtor to file counter and the matter was listed for arguments. The Counsel for the Corporate Debtor did not appear thereafter. Hence it can be understood that the Corporate Debtor does not have anything to submit in opposition to the contentions made by the Financial Creditor.
Hence I am of the considered view that it is a fit case to admit and order initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Financial Creditor has suggested one name i.e., Mr.K.K.Balasubramanian (IBBI/IPA-001/IP-P-01544/2018-2019/12401) as Insolvency Resolution Professional (IRP).
ORDER
The Company Petition is admitted ex parte. The Corporate Insolvency Resolution Process of the Corporate Debtor shall commence from this date and shall be completed within 180 days hence.
Mr.K.K.Balasubramanian (IBBI/IPA-001/IP-P-01544/2018-2019/12401), having office at B401 Ramaniyam Samarpann, 20th East Street, Kamaraj Nagar, Thiruvanmiyur, Chennai, Tamil Nadu-600041; e-mail: [email protected]; Mobile: 9962003282 is appointed as the Interim Resolution Professional. No disciplinary proceeding is pending against him as per the IBBI website. He is directed to file his written consent in Form No. 2 forthwith.
He is directed to take charge of the Corporate Debtor's management forthwith and take necessary steps in furtherance of the CIRP in terms of Sections 13(2), 15, 17, 18 and 20 of Code and Rules made thereunder.
Moratorium in respect of the Corporate Debtor is hereby declared in terms of Section 14 of the Code.
The Directors, Promoters or any other person(s) associated with the management of Corporate Debtor shall extend all assistance and cooperation to the IRP as stipulated under section 19 of the Code for effectively discharging his functions under the Code.
The Registry shall communicate the order to the Financial Creditor and the Corporate Debtor forthwith.
The Financial Creditor and the Registry shall send the copy of this order to IRP for necessary compliance.
During the course of today’s hearing, the Counsel for the Financial Creditor proposed Mr. Ravuru Hari Prasad as the new IRP to conduct the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor and also undertook to file the consent of the new IRP along with a copy of the AFA within a week.
Considering the submissions of the FC, the credentials of the proposed IRP was verified on the IBBI website, which shows that the proposed IRP holds the valid Authorisation for Assignment (AFA) up to 30.06.2026. The relevant extract of the IBBI website is given below:
Accordingly, we hereby appoint Mr. Ravuru Hari Prasad bearing Registration No. IBBI/IPA-001/IP-P-02690/2022-2023/14126, e-mail ID: [email protected] having registered address at Flat.304, Sai Neelakanta Towers, Chandulal Bowli Sikh Village, Secunderabad, Near Tadbund Hanuman Temple, Hyderabad, Telangana-500009 as IRP in the instant matter.
The Financial Creditor is directed to deposit Rs.1,00,000/- (Rupees One Lakh Only) with the IRP to meet out the expense to perform the functions assigned to him in accordance with Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The amount, however, will be subject to adjustment by the Committee of Creditors as to be duly accounted for by IRP and shall be paid back to the Financial Creditor.
A copy of this Order shall immediately be communicated to the Financial Creditor, the Corporate Debtor, IBBI, and the IRP named above by the Court Officer/Registry of this Adjudicating Authority.
List the matter on 25.11.2025 for filing the progress report of the CIRP.