Allowed

In the matter of Y. Pani and Company Pvt. Ltd. [Cp (Ib) No. 8/CTB/2021]

NCLT13 Sept 2021CP (IB) No. 8/CTB/2021

Case brief

AI extract

What is this about?

The National Company Law Tribunal admitted an application under Section 10 of the IBC, 2016, filed by Y. Pani and Company Pvt. Ltd. itself to initiate CIRP, as the company was unable to pay its debts. The Tribunal declared moratorium under Section 14, appointed an Interim Resolution Professional, and directed progress reports.

What did the court decide?

Application admitted; CIRP initiated against the Corporate Debtor; Moratorium declared; Interim Resolution Professional appointed.

In the matter of Y. Pani and Company Pvt. Ltd. [Cp (Ib)… — Insolvency and Bankruptcy | NCLT (2021)

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IN TIIE NATIONAL COMPAI{Y LAW^TRIBUNAL CUTTACK BENCH CUTTACK

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CP 0B) No. 8/CBl2021

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In the Matter of.

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An application under Section 10 of the^{Insolvency and Bankruptcy Code, 2016} read with Rule 7 of the Insolvency and Bankruptcy^{(Application to Adjudicating} Authority) Rules, 2016

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And

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In the Matter of.

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Y. Pani and Company Pvt. Ltd., a company incorporated^{under the Companies} Act,1956 having its Registered Office situated at:^{4.-L,BanaphoolHouse,Budha} Nagar, Bhubaneswar - 751006, Odisha.

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. . . Corporate Applicant/ Corporate Debtor Coram: Shri Rajasekhar V.K. : Member (Judicial) Shri Satya Ranjan Prasad : Member (Technical)

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Appearances (through video conferencing)

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For the applicant:

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Mr. Siva Sankar Chaini, Advocate.

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Order reserved onz 26.07.2021 Order pronounced on: 13.09,2021

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ORDER

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Per: Rajasekhar V.K., Member^(ludicial)

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This application has been filed by Y. Pani and Company Pvt. Ltd.^under Section 10 of Insolvency and Bankruptcy Code,²⁰¹⁶ to^{initiateCorporate} Insolvency Resolution Process^(CIRP) against itself as the Corporate^Person

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IN THE NATIONAL COMPANY LAW TRIBUNAI, CUTTACK BENC}I

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CP^(IB) No.8/CB/2021 Inre: CIHP of Y, PANI & COMPANY^{PVT, LTD.}

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is unable to pay the debt of <7 ,97 ,73,547 /^{- (Rupees} seven^{croreninety-seven} lakh seventy-three thousand five hundred and forty-seven^only).

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2, The Registered Office ofthe Corporate Debtor^{is situatedat A-1, Banaphool} House, Budha Nagar, Bhubaneswar 75L 006, in the^{State of Odisha,within} the^jurisdiction of this Adjudicating Authority.

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The applicant was incorporated on^15.01 .L990^{as a privatelimited company} with a main objective of lodging, boarding and^{restaurant business. The} applicantsubmits ttrat it has requisite infrastructure^{to run the business.The}

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brief facts arc that Hotel "Raaz" which is situated at^{viTlage Angul Town,} Tahsil - Angul, Khata No. - 335, Plot No. - 779/L864,^area -^A0.440 decimal. This asset was taken^possession of by^{the OrissaStateFinancial} Corporation, Cuttack on 28.06.2019. The original owner of the land^is Radha Prasad and the owner was running a hotel business in^{the name} of Hotel Suni Resorts Pvt. Ltd and was seized by the Orissa State Financial Corporation, Cuttack. These assets were handed over to the corporate applicant on 15.01.1990 with a copy of leave and license agreement on 31.03.1990.

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4, On 31.01.L995, the Orissa State Financial Corporation informed the applicant to sell the unit to the^petitioner for t36,00 ,000/^- which inclusive of total loan amount <90,164.27 /- with interest @^{L2.5o/o per} annum for purchase of hotel and for development of hotel and auction sale was made on 13.01.1995.

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The Orissa State Financial Corporation handed over the^possession to^the co(porate applicant and the entfue loan was rescheduled by the Orissa State Financial Corporation but the shoo^possession was not been^given. On 30.L2.2019, the Orissa State Financial Corporation for One Time Settlement (OTS) sent letter for depositin 976,39 ,4L ,000 /^- and after that the applicant had taken loan to the tune of {1,06,57,000/- from Guru Empires for repayment of loan and taking time from the Orissa State^Financial

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IN TIIE NATIONAL COMPANY LAW^TRIBUNAL CUT'TACK BENCH

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CP (IB)No.8/CB/2021 In re: CIRP of Y. PANI & COMPANY^{PVT, LT'D.}

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Corporationto affange the money. However, the applicantwas^{not able to} affange the money to repay the loan.

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The applicant submits that it has an excellent ffack record and^{infrastructure} for the smooth functioning of the business. Therefore, the applicant^is confident that it can be revived and rehabilitated under the^{aegis and} supervision of the regime in^place under the Code.

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The Board of Directors'meeting was held on 02.0L.202L and^{the Extra} Ordinary General Body Meeting of the Shareholders was^heldon 25.01.202L In both the Meeting, unanimously^passed resolution to approachthis Adjudicating Authority for initiation of Corporate^Insolvency Resolution Process. The applicant has enclosed the copies of Audited Financial Statements for the two Financial Year as on 3L.03.20L9 and 31.03.2020 along with the application.

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For appointment as Insolvency Resolution Professional, the Corporate Applicant has suggested the name of one Mr. Umesh Chandra Sahoo resident of Plot No.4, Snow Drop Apartment, Jharpada, Cuttack Road, Bhubaneswar, Khurda 7 51 006 having Registration No. IBBI/IPA^-002 / IP^- N00621,/2018-L9/ 11855 and Email in&@nayadarshau.qom. This application is ADMITTED by following order.

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ORDER

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(1) This application filed by the Corporate Applicant under Section 10 of the Insolvency & Bankruptcy Code, 2016 is hereby ADMITTED for initiating the Corporate Insolvency Resolution Process against Y. Pani and Company Pvt. Ltd. (Corporate Applicant/Corporate Debtor). Moratorium order is passed for a public announcement as stated in Section 13 of the IBC,2016.

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IN THE NATIONAL COMPANY LAW^TRIBUNAL CUTTACI( BENCH

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CP (IB) No.8/CB/2021 In re: CIKP of Y. PANI & COMPANY^{PVT. LTD.}

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(ir) The moratorium is declared for the purposes referred to in Section^L4 of the Insolvency & Bankruptry Code,^{2016. The IRP shall cause a} public announcement of the initiation of Corporate Insolvency Resolution Process andcalTfor the submission of^{claimsunder Section} 15. The public announcement refened to in clause O) of^sub-Section (1) of Insolvency & Bankruptcy Code, 2016 shallbe made immediately.

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(iii) Moratorium under Section 14 of the Insolvency & Bankruptcy^Code, 2016 prohibits the following:^-

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(1) 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;

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(2) Transfetring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or alay legal right or beneficial interest therein;

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(3) Any action to foreclose,^(ecover or enforce any security interest createdby the Corporate Debtor in respect of its^property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest fuct,2002;

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(a) The recovery of any property by an owner or lessor where such property is occupied by or in possession of the Corporate Debtor.

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(1v) The supply of essential goods or seryices to the Corporate Debtor as may be specified shall not be terminated or suspended or interrupted during the moratorium^period.

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(v) The provisions of sub-Section (1) shall not apply to such transactions as may be notified by the Central Govemment in consultation with any financial sector regulator.

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IN THE NATIONAL COMPANY LAW^TRIBUNAL CUT"TACK BENCH

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CP (IB) No.8/CB/2021 In re: CIfuP of Y, PANI & COMPANY^{PVT, LTD,}

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(vi) The order of moratorium shall take effect the date of admission till^the completion of the Corporate Insolvency^{ResolutionProcess.}

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(vii) At any time during the Corporate Insolvency Resolution^Process period, if the Adjudicating Authority approves the Resolution^Plan under sub-section (1) of sec.31 or^passes an order^{for liquidation of} Corporate Debtor under section 33, the moratorium^{sha1l cease to} have effect from the date of such approval or^{liquidationorder, as the} case may be.

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(viii) Necessary public announcement as per Section 15 of the IBC,²⁰¹⁶ may be made by the Resolution Professional upon^{receiptof the copy} of this order.

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(ix) Mr. Umesh Chandra Sahoo registered with the ICSI Insolvency Professionals Agency having having Regisration No. IBBI/IPA002/IP-N0062L/2018-|9/11855 resident of Plot No. -^4, Snow Drop Apartment, Jharpada, Cuttack Road, Bhubaneswar, Khurda -^{7 51 006} having E-mail Id - [email protected] is appointed as Interim Resolution Professional for ascertaining the^particulars of creditors and conventngameeting of the Committee of Creditors for evolving a Resolution Plan.

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(x) The Resolution Professional shall conduct CIRP in time bound manner as per Regplation 40A of IBBI^(Insolvency Resolution Process for Corporate Persons) Regulation, 2016.

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(xi) The Interim Resolution Professional should convene a meeting of the Committee of Creditors and submit the resolution^passed by the Committee of Creditors.

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IN THE NATIONAL COMPANY^{LAW TRIBUNAL} CUTTACK BENCI.I

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CP (IB) No.8/CB/2021 Inre: CIW of Y. PANI & COMPANY^{PVT. LTD.}

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(xii) IA No. 23lCB /2021connected with CP (IB) No. 8/CB/2021 and IA No. 61ICB/202L connected with CP^(IB) No. 8/CB/2021^{filed for} urgent hearing are CLOSED.

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(xiii) Registry is hereby directed to communicate the order to the Corporate Applicant/Corporute Debtor and to the Interim^Resolution Professional by Speed Post as wel1as through^E-mail.

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