Allowed

In the matter of Kanishkdeep Stock Consultants Pvt. Ltd. Company Petition No. (IB)-252-10-JPR-2019

NCLT9 Feb 2021

Case brief

AI extract

What is this about?

The National Company Law Tribunal admitted an application under Section 10 of the Insolvency and Bankruptcy Code, 2016. The court found the application complete and proceedings initiated.

What did the court decide?

Corporate Insolvency Resolution Process initiated; moratorium issued under Section 14; Sanjay Badrilal Punglia appointed as Interim Resolution Professional.

In the matter of Kanishkdeep Stock Consultants Pvt. Ltd… — Insolvency and Bankruptcy | NCLT (2021)

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IN THE NATIONAL COMPANY LAW TRIBUNAL JAIPUR BENCH. JAIPUR

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Company Petition No. (IB)-252110/JPR/201 9

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CORAM: MT. AJAY KLTMAR VATSAVAYI, MEMBER(.TUDICIAI-) MT. RAGHU NAYYAR, MEMBER (TECI{NIC,\I,)

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IN THE MATTER OF SECTION 10 of The Insolvency, and Bankruptcy Code, 2016 read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 20 1 6

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In the matter of:

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Kanishkdeep Stock Consultants Pvt. Ltd. 6.4-10. Mahaveer Nagar Extension, Kota- 324A05 (Raj asthan)

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...Petitioner,/ Applicant

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For the Applicant : Siddharth Bapna, Adr,.

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For the Respondent(s) : U. S. Patole, ROC-cum-OL

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Prateek Kedawat. Adv. for IT On Behalf of R.B. Mathur, Senior Standing Counsel for Income Tax Department

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Order Pronounced On z 09.02.2021

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ORDER

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Per: Shri Raghu Nalr)rar. Technical Member

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1" The instant Application is filed under Section 10 of the Insolvency and

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Bankruptcy Code, 2016 ('Code') read with rule 7 of the Insolvency and

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Bankruptcy (Application to Adjudicating Authority) Rules. 2016

tB-zszl1.Ol)PR/2019

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('Rules') for initiation of Corporate Insolvency Resolution Process in respect of IWs. Kanishkdeep Stock Consultants Private L.imited. the Corporate Debtor being the Applicant CompanS, itself.^'fhe instant Application is filed through director Mr. Manoj Gupta, dul,v authorised vide board resolution dated 02.08.2019.

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2" The Applicant, 'lWs. Kanishkdeep Stock Consultants Private Limited', is a company incorporated on 09.02.2007 under the Companies Act. 1956 bearing CIN No. U67120RJ2007PTC023816. The Applicant Cornpany has its registered office at 6,{-10, Mahaveer Nagar Extension Kota324005 within the territorial jurisdiction of this Adjudicating Authority.

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1J^ As per averments, the Corporate Debtor had one financial creditor who had extended financial facilities" It is stated that due to acute financial constraints. the Corporate Debtor could not maintain the accounts regularly and as a result as on 3 l't March, 2019 the total amount in default is Rs" I,90,42,5561-"

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4^ In order to prove the said default the Corporate Debtor has placed demand letter dated 13"03.2018 issued by the financial creditor asking for repayment of the financial facilities extended to it" Copy of demand letter is annexed as Annexure-M to the Application.

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There is no dispute that the Applicant Company has admittedly defaulted in liquidating its debts which is in excess of the minimum applicable amount under Section 4 of the Code and therefore is entitled to file the present Application in terms of sub-section ( I ) of Section I 0 of the Code.

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In compliance of the requirements of Section 10 (3) (a) of the Code read with Annex-V of Form 6 of the Rules, the Applicant Company has t-rled copies of audited financial statements of the Corporate Debtor for the financial years i.e. 2017 -2018 to 201 8- 19 and provisional statements upto 30.09.2019"

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7" Further in compliance of Section 10 (3) (b) of the Code the Applicant has proposed the name of Mr. Sanjay Badrilal Punglia. registration no. IBBI/IPA-O01/P-P00855/2017-2018111437 as the Interim Resolution Professional ('IRP'). The Applicant Company has obtained a written communication in Form-2 from the Insolvency Professional for appointment as an IRP. In the Form-2 filed along with the Application it has been affirmed by the proposed IRP that he is a registered Insolvency Professional and qualified to practice as an Insolvency Professional. Further it has been affirmed / confirmed that there are no disciplinary proceedings pending against the proposed IRP. The said Fonn-2 is annexed as Annexure-D to the Application.

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In the case of M/s.^(Jnigreen Global Private Limited verslts Punjab National Bank and Ors. in Company Appeal (AT) (lnsolvency) No. 8l of 2017 Hon'ble NCLAT vide order dated 1't December,20l 7 has held that:

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"23. Anyfact unrelated or beyond the requirement under I & B Code or Forms prescribed under Adjudicating Authority Rules (Form 6 in the present case) are not required to be stated or pleaded. Non-disclosure of any fact, unrelated to Section l0 and F-orm 6 cannot be termed to be suppression of facts or to hold that the Corporate Applicant has not come with clean hand except the application where the 'Corporate Applicant' has not disclosed disqualification, ,f ory, under Section I I ............^"

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In view of the above, it was noted that the Applicant has failed to make

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submissions with respect to Section 11 of the Code. The Applicant was directed to remove the deficiency through an Affidavit. In cornpliance thereof the Applicant had filed an affidavit vide dairy no. 25912021 dated 25.01.2021 affirming that the Corporate Applicant is not disqualified in terms of provisions of Section 11 of the Code to file and maintain the Application under Section 10 of the Code. The affidavit further confirms that no CIRP has ever been initiated nor any liquidation order or winding up order has been made against the Applicant Company.

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lO.In view of,the above it is clear that a default has occurred and the present

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Application under Section 10 is complete and that the Applicant is nor ineligible under Section I I of the Code. Further there is no dispute that the requirements prescribed under sub-section 3 (a) and (b) of Section l0 of the Code have also been complied with.

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I LHowever before admitting the matter, notices were issued to the Registrar of Companies and the Income Tax Department. The Income Tax Department has submitted its No objection vide letter dated 27.11.2019 and Ld. JTA for RoC has submitted during the hearing on 09.01.2020 that they have no specific reply or objection against the Application.

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12"The Corporate Debtor has also placed on record a spccial resolution passed by the shareholders, ratiflzing the decision to file the present petition in terms of the amended provisions of Section 10 of the Code. The particulars of the debts owed by the Corporate Debtor, with amounts due to each of them have also been furnished. Copy of special resolution is a.rr.^ed as Annexure-N with the Application"

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13"The Insolvency and Bankruptcy Code. 2016 is a complete Code in itsell-. The provisions of the Code are to be mandatorily followed. Adherencc to

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. the statutory requirements has to be in toto. Section l0 (4) (a) of the Code mandates the Adjudicating Authority to admit the application if it is complete" When the language of the Code is clear and explicit the

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Adjudicating Authority must give effect to it, whatever may be the oonsequences.

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14.In view of the foregoing, we are satisfied that the present Application is complete and that the Applicant Corporate Debtor has committed a default. Therefore, as the Application is complete the present petition is admitted under section l0 (4) (a) of the Code. The corporate insolvency resolution process shall commence from the date of this order under subsection 5 of Section 10 of the Code.

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15.A moratorium in terms of Section 14 of the Code is being issued prohibiting the following:

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Institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of an1, judgment, decree or order in any court of law, tribunal, arbi.tration panel or

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other authorie;

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transferuing, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficictl interest therein,'

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. arU action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its propere

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including any action under the Securitisation and Reconstruction

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of Financial Assets^qnd Enforcement of SecuriQ Interest Act, 2002;

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. recovery of any properQ by an owner or lessor where such property is occupied by or in the possession o.f the Corporate Debtor.

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16.It is further directed that:

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

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The provisions of sub-section (l) of section l4 oJ'the Code shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

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t7^Mr" Sanjay Badrilal Punglia, registration no. IBBI/IPA-001/IP-P00855 DALT-2018111437 is appointed as Interim Resolution Professional, who shall take statutorily prescribed steps inter-alia as envisaged under Section 15,17 and 18 oftheCode. Since,thetenureofthe IRP undersection l6(5) shall not exceed 30 days from the date of his appointmenr; the IRP is directed to submit his report at the earliest.

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