Small Industries Development Bank Of India vs Jaisanshu Medicare Private Ltd.

This application has been filed by Small Industries Development bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The case as stated by the Applicant in part 4 is as under:

The Applicant has placed on record the following documents:-

Industrial property bearing Khasra No.32, Mauza Lakeshlvari, Roorkee, District Hariclwar, ad measuri ng 1254.64 Sq. Meters; And Flat No. A-63, Second Floor, Khasra No. 903, Gulab Bagh Colony, Uttam Nagar, New Delhi-L1-0059 xiii. Demand Promissory Note by Directors of Borrower/CD w.r.t Working Capital Loan of Rs. 50 Lakhs.

The Applicant has also placed on record the Record of Default obtained from the NeSL for an amount of Rs. 1,63,26,962.00/- and the date of default is 09-09-2023.

During the course of arguments, Ld. Counsel for the Corporate Debtor submitted that the Applicant has also initiated proceedings before the DRT, and parallel proceedings cannot be allowed to proceed. She also submitted that the present application has been filed as a recovery proceeding and is not maintainable under Section 7 of the Code.

She further contended that the Respondent offered settlement proposals which have not been considered by the Applicant/Financial Creditor.

Ld. Counsel appearing on behalf of the Applicant in response submitted that the proceedings before the DRT will not bar initiation of proceedings under Section 7 of the code. Further, the settlement proposals given by the Corporate Debtor have been considered and rejected by the Financial Creditor and communication dated 23.02.2026 has been issued to the Corporate Debtor.

We have heard the submissions of Ld. Counsels for both the parties and perused the material placed on record by the parties. The Corporate Debtor has not disputed the existence of the financial debt or the occurrence of default. The objections raised with respect to the pendency of proceedings before the DRT and the rejection of the settlement proposals do not constitute a bar to the maintainability of an application under Section 7 of the Code. The documentary evidence placed on record, including the loan documents, statements of account and the Record of Default issued by NeSL, sufficiently establishes the financial debt and the occurrence of default. Thus, the essential ingredients for maintaining an application under Section 7 of the Code stand fulfilled.

Having regard to the facts and circumstances of the case, we are of the considered view that the Applicant/Financial Creditor has made out a case under Section 7 of the Code and established debt and default as defined under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The Application, (IB)-461(ND)/2025 filed by the Applicant under Section 7 of the Code, read with Rule 4 of the Adjudicating Authority Rules for initiating CIRP against the Respondent, hereby stands admitted.

We declare a moratorium in terms of Section 14 of the Code. The necessary consequences of imposing the moratorium flow from the provisions of Section 14(1)(a), (b), (c) & (d) of the Code. Thus, the following prohibitions are imposed:

[Explanation.- For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a licence, permit, registration, quota, concession, clearance 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, concession, clearances or a similar grant or right during the moratorium period;]”

It is made clear that the provisions of the moratorium shall not apply to transactions which might be notified by the Central Government or the supply of the essential goods or services to the Corporate Debtor, as may be specified, are not to be terminated, suspended or interrupted during the moratorium period. In addition, as per the Insolvency and Bankruptcy Code (Amendment) Act, 2018, which has come into force w.e.f. 06.06.2018, the provisions of the moratorium shall not apply to the surety in a contract of guarantee to the corporate debtor in terms of Section 14(3)(b) of the Code.

Sub-section (3) (b) of Section 7 mandates the Financial Creditor to furnish the name of an Interim Resolution Professional. In compliance thereof, the applicant has proposed the name of Mr. Alok Kaushik as the Interim Resolution Professional (“IRP”) having address: G-1O5, Sai Baba Aptt, Sec 9 Rohini, Delhi-110085, having his email address as : [email protected]. His registration number is IBBI/IPA-OO2/IP-N00253/2OI7 -18/10767. The Applicant filed a copy of the Consent issued by Mr. Alok Kaushik in Form 2, Written Communication by proposed IRP, as per the requirement of Rule 9(1) of the Adjudicating Authority Rules, along with the Certificate of Registration. The Applicant is directed to file a valid Authorization for Assignment within two weeks from the date of receipt of this order.

In pursuance of Section 13(2) of the Code, we direct the IRP, as the case may be, to make a public announcement immediately with regard to the admission of this application under Section 7 of the Code. The expression immediately means within 3 (three) days, as clarified by Explanation to Regulation 6(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

During the CIRP period, the management of the Corporate Debtor shall vest in the IRP/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 one week from the date of receipt of this order, in default of which coercive steps will follow. There shall be no future opportunity given in this regard.

The IRP is expected to take full charge of the Corporate Debtor’s assets and documents without any delay whatsoever. He is also free to take police assistance, and this Adjudicating Authority directs the Police Authorities to render all assistance as may be required by the IRP in this regard.

The Financial Creditor is directed to deposit a sum of Rs. 2,00,000/- (Rupees Two Lakhs only) with the IRP to meet out the expenses to perform the functions entrusted to him in accordance with regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016. However, this amount shall be subject to adjustment by the Committee of Creditors, based on the accounts maintained by the IRP upon the conclusion of the CIRP. The needful shall be done within one week from the date of receipt of this order by the Financial Creditor.

The IRP/RP is further directed to submit periodic progress reports to this Adjudicating Authority at the conclusion of each quarter.

In accordance with the provisions of the Code, the Registry is directed to communicate a copy of the order to the Financial Creditor, the Corporate Debtor, the IRP and the Registrar of Companies, NCT of Delhi and Haryana, by Speed Post and by email, at the earliest but not later than seven days from today.

The Registrar of Companies shall update his website by updating the status of the Corporate Debtor, and specific mention regarding admission of this application must be notified.

The Registry is further directed to send a copy of this order to the IBBI for their record.

A certified copy of this order may be issued, if applied for, upon compliance with all requisite formalities.

No order as to costs.