SREI Equipment Finance Limited vs AMW Commercial Vehicle Applications Limited

The above Company Petition is filed by SREI Equipment Finance Limited, hereinafter called as “Petitioner” seeking to initiate of Corporate Insolvency Resolution Process (CIRP) against AMW Commercial Vehicle Applications Limited hereinafter called as “Corporate Debtor” by invoking the provisions of Section 7 Insolvency and Bankruptcy code (hereinafter called “Code” read with rule 4 of Insolvency & Bankruptcy (Application to Adjudication Authority) Rules, 2016 for a Resolution of an unresolved Financial Debt of Rs. 292,79,60,204/- as on 30.09.2020.

The Petitioner and the Corporate Debtor entered into 4 Loan Agreements wherein the Corporate Debtor borrowed loans on terms and conditions. In the requisite Form-1, under the head “Particulars of Financial Debt” the dates of disbursement for the Term Loan Facility granted of Rs. 16621,00,000/- is given and which is reproduced as below:

The Petitioner enclosed the following details of documents, records and evidence of default in respect of sanctioning the term loan facilities to the Corporate Debtor:

The Petitioner on 19.10.2020 issued demand notice calling upon the Corporate Debtor to clear the outstanding dues within 7 days from the receipt of notice.

Ms. Rima Desai, Advocate, the associate working with Parinam Law and associates, who is holding Vakalatnama in the above Company Petition on behalf of the Corporate Debtor, on instructions, reported no objection for allowing the above Company Petition.Accordingly, the above Petition is admitted by passing the following:

a. The above Company Petition No. (IB) 117 (MB)/2021 is hereby allowed and initiation of Corporate Insolvency Resolution Process (CIRP) is ordered against M/s. AMW Commercial Vehicle Applications Limited.

b. This Bench hereby appoints Mr. Avinash Ambikaprasad Shukla, Insolvency Professional, Registration No: IBBI/IPA-003/IP-N00243/2019-2020/12839, having address at Level-3, Padma Palace, Plot No. 79, Sector-28, Vashi, Navi Mumbai, Maharashtra-400703 as the interim resolution professional to carry out the functions as mentioned under the Insolvency & Bankruptcy Code, 2016.

c. The Financial Creditor shall deposit an amount of Rs.5 Lakhs towards the initial CIRP costs by way of a Demand Draft drawn in favour of the Interim Resolution Professional appointed herein, immediately upon communication of this Order. The IRP shall spend the above amount towards expenses and not towards fee till his fee is decided by CoC.

d. That this 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 the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 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.

e. 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.

f. 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.

g. That the order of moratorium shall have effect from the date of pronouncement 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, as the case may be.

h. That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under section 13 of the Code.

j. Registry shall send a copy of this order to the Registrar of Companies, Mumbai, for updating the Master Data of the Corporate Debtor.

k. Accordingly, CP 117 of 2021 is admitted.

l. The Registry is hereby directed to communicate this order to both the parties and to IRP immediately.