Allowed

In the matter of Shivpriya Cables Private Limited [IB--437-ND-2023]

NCLT7 Dec 2023IB--437-ND-2023

Case brief

AI extract

What is this about?

The Tribunal admitted an application by a financial creditor seeking initiation of CIRP against a corporate debtor under Section 7 of the IBC, 2016 due to loan default. The debt was undisputed, and the CIRP was commenced with declaration of moratorium and appointment of an Interim Resolution Professional.

What did the court decide?

CIRP proceedings commenced, moratorium declared, IRP appointed, and directed deposit of Rs. 2,00,000/- for immediate expenses.

In the matter of Shivpriya Cables Private Limited… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL

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NEW DELHI BENCH (COURT – II)

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Item No. 201 (IB)-437/ND/2023

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IN THE MATTER OF:

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NORTHERN ARC CAPITAL LIMITED

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… Applicant/Petitioner

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Versus

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SHIVPRIYA CABLES PRIVATE LIMITED

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… Respondent

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Under Section: 7 of IBC, 2016

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Order delivered on 07.12.2023

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CORAM:

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SH. ASHOK KUMAR BHARDWAJ, SH. L. N. GUPTA, HON’BLE MEMBER (J) HON’BLE MEMBER (T)

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PRESENT:

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For the Applicant : Adv. Deepak Biswas, Adv. Varsha Agarwal For the Respondent : Adv. Karan Grover

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Hearing Through: VC and Physical (Hybrid) Mode

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ORDER

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As can be gathered from the averments made in the petition, the first disbursement agreement was executed between the Corporate Debtor and Financial Creditor in respect of availing unsecured business loan for an amount of Rs. 1,50,00,000/- (one crore fifty lakhs) only on 30.07.2019. In the wake, the disbursement request letter was issued by the Corporate Debtor for seeking disbursement on 30.07.2019. The part of the loan amount under the first disbursement agreement was received by the Corporate Debtor on 31.07.2019. The disbursement request letter was again issued by the CD on 28.08.2019 and the balance amount of Rs.50 lakhs was disbursed by the Petitioner on 31.08.2019. The second Facility agreement was entered into between the parties on 25.09.2020 for an amount of Rs.28,11,400/- (Twentyeight lakhs eleven thousand four hundred only). The loan amount was disbursed on 30.09.2020, the loan was repaid by the Corporate Debtor in part and the last payment was made on 28.05.2021. According to the Ld. Counsel appearing for the Petitioner, the date of default is 31.01.2023.

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Mr. Karan Grover, Ld. Counsel appearing for the Corporate Debtor did not dispute the disbursement of the loan amount and default in payment thereof. Ld. Counsel for the Petitioner could draw our attention to AnnexureA3 (colly.), enclosed with the petition to point out the disbursement of the loan

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Ashima

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amount. The statement of account reflecting the disbursement of the loan amount to the Petitioner is at Page No. 158 & 159 of the petition. The relevant excerpt of the statement reads thus:

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Ashima

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As can be seen from Section 7 (5)(a) of IBC, 2016, while considering an application under Section 7 of IBC 2016, what this Adjudicating Authority needs to satisfy is to whether there is disbursement of loan and default in payment of the same. There is sufficient material on record to indicate the disbursement of the loan. The CD has not rebutted the disbursement of the loan, rather as has been noted above Mr. Karan Grover Ld. Counsel for the CD has conceded both the disbursement of the loan amount and the default in payment of the same.

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Ashima

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The Ld. Counsels for the parties jointly submitted during the hearing that they are not related parties and have no relationship except that of the borrower and lender with each other and the present petition is not a collusive petition.

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In the wake of the above, we are left with no option but to admit the present petition and in the wake of the provisions of Section 7 (6) of IBC, 2016, the CIRP proceedings stands commenced. Ordered accordingly.

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In the wake, moratorium as provided under Section 14 of IBC, 2016 is declared qua the CD and as a necessary consequence thereof the following prohibitions are imposed, which must be followed by all and sundry :

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(a) The institution of suits or continuation of pending suits or proceeding s against the Respondent including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;

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(b) Transferring, encumbering, alienating or disposing of by the Respondent any of its assets or any legal right or beneficial interest therein;

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c) Any action to foreclose, recover or enforce any security interest created by the Respondent in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

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(d) The recovery of any property by an owner or lessor, where such property is occupied by or in the possession of the Respondent.

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7. As proposed by the Petitioner, Mr. Kanti Mohan Rustagi, having Registration No. IBBI/IPA-002/IP-N00097/2017-18/10240 (e-mail id: [email protected]) is appointed as IRP, subject to the condition that no disciplinary proceeding is pending against him and disclosures as required under IBBI Regulations, 2016 are made by him within a period of one week from this Order. It is further ordered that Mr. Kanti Mohan Rustagi, IRP (Registration No. IBBI/IPA-002/IPN00097/2017-18/10240) shall take charge of the CIRP of the Corporate Debtor with immediate effect and would take steps as mandated under the IBC specifically under Section 15, 17, 18, 20 and 21 of IBC, 2016 read with extend provisions of IBBI (Insolvency Resolution of Corporate Persons) Regulations, 2016.

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The Petitioner is directed to deposit Rs. 2,00,000/- only with the IRP to meet the immediate expenses. The amount, however, will be subject to

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Ashima

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adjustment by the Committee of Creditors as accounted for by the Interim Resolution Professional and shall be paid back to the Financial Creditor.

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9. A copy of this Order shall immediately be communicated by the Registry/Court Officer of this Tribunal to the Petitioner /Financial Creditor, the Respondent/Corporate Debtor and the IRP mentioned above.

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10. In addition, a copy of this Order shall also be forwarded by the Registry/Court Officer of this Tribunal to the IBBI for their records.

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Sd/Sd/(L. N. GUPTA) (ASHOK KUMAR BHARDWAJ) MEMBER (T) MEMBER (J)

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Ashima

In the matter of Shivpriya Cables Private Limited [IB--437-ND-2023]

Case brief

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In the matter of Shivpriya Cables Private Limited [IB--437-ND-2023]

Case brief

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What did the court decide?

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