Allowed

In the matter of Alliance Embroidery Machine Pvt. Ltd. [CP(IB)-153(AHM)-2021]

NCLT10 Apr 2024CP(IB)-153(AHM)-2021

Case brief

AI extract

What is this about?

The Tribunal admitted the application to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The court found that the operational debt existed, a valid demand notice was issued, and the default amount exceeded the statutory threshold.

What did the court decide?

Admission of CIRP; declaration of moratorium under Section 14; appointment of IRP Mr. Mahendra Prasad Jindal; direction to operational creditor to pay fees.

In the matter of Alliance Embroidery Machine Pvt. Ltd… — Insolvency and Bankruptcy | NCLT (2024)

¶1

IN THE NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD DIVISION BENCH COURT - I

¶2

ITEM No.301 C.P.(IB)/153(AHM)2021

¶3

Order under Section 9 IBC

¶4

IN THE MATTER OF:

¶5

Nanjing Maohj Information & technology Company V/s Alliance Embroidery Machine Pvt Ltd

¶6

........Applicant

¶7

........Respondent

¶8

Order delivered on 10/04/2024

¶9

Coram:

¶10

Mr. Shammi Khan, Hon’ble Member(J) Mr. Sameer Kakar, Hon’ble Member(T)

¶11

PRESENT:

¶12

For the Applicant : For the Respondent :

¶13

ORDER

¶14

The case is fixed for pronouncement of the order. The order is pronounced in the open court, vide separate sheet.

¶15

-sd-

¶16

-sd-

¶17

SAMEER KAKAR SHAMMI KHAN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

¶18

BEFORE THE ADJUDICATING AUTHORITY NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH –I, AHMEDABAD

¶19

CP(IB)/153(AHM)/2021

¶20

[ Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 r.w.Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016]

¶21

In the matter of: M/s. Alliance Embroidery Machine Pvt. Ltd.

¶22

M/s. Nanjing Mahoj Information & Technology Co, Ltd.

¶23

Having address at: Building, C No. #4, GupinggangGulou District, Nanjing Jiangsu, Province, P.R. China

¶24

…Applicant/Operational Creditor

¶25

VERSUS

¶26

M/s. Alliance Embroidery Machine Pvt. Ltd.

¶27

Having address at: 2^nd Floor, MeghMalhar Apartment, Plot-94, Nr. Sosiyo Circle, U.M. Road, Surat, Gujarat 395210

¶28

…Respondent/Corporate Debtor

¶29

Order pronounced 10.04.2024

¶30

CORAM:

¶31

SH. SHAMMI KHAN, HON‟BLE MEMBER (JUDICIAL) SH. SAMEER KAKAR, HON‟BLE MEMBER (TECHNICAL)

¶32

CP(IB)/153(AHM)/2021 In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶33

1 of 25

¶34

APPEARANCE

¶35

For the Applicant : Mr. Anip Gandhi, Advocate For the Respondent: Mr. Dhiren Dave, Advocate

¶36

O R D E R (PER: BENCH)

¶37

The present application is filed on 09.08.2021 by the Applicant M/s. Nanjing Mahoj Information & Technology Co, Ltd (hereinafter referred to as „Operational Creditor‟ ) against the Respondent M/s. Alliance Embroidery Machine Pvt. Ltd (hereinafter referred to as „Corporate Debtor‟ ) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016” ) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as “IB

¶38

(AAA) Rules, 2016” ) for initiation of Corporate Insolvency Resolution Process ( CIRP ) against the Respondent/Corporate Debtor, to appoint Interim Resolution Professional (hereinafter referred to as “IRP” ) and declare the moratorium for having defaulted payment of the operational debt of USD 747796.90

¶39

CP(IB)/153(AHM)/2021

¶40

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶41

2 of 25

¶42

equivalent to Rs. 5,59,16,288.86 calculated at the exchange rate of 1 USD = 74.7747 as on 02.07.2021.

¶43

A perusal of Part-I of the Form-V reveals that the Applicant herein is registered in China, having Identification No. 320106000431383 and having its address at Building, C No. #4, Gupinggang Gulou District, Nanjing Jiangsu, Province, P.R. China. This application has been submitted through one Mr. Sahil Bhatia, Power of Attorney Holder of the Operational Creditor who has been authorised by Board Resolution dated 19.02.2021. The Copy of Board Resolution as well as Power of Attorney dated 19.02.2021 are annexed at Annexure-A.

¶44

A perusal of Part-II of the Form-V reveals that Corporate Debtor is one M/s. Alliance Embroidery Machine Pvt. Ltd., Limited, having CIN No.

¶45

U17120GJ2009PTC058409. The Corporate Debtor was registered on 20.10.2009 and has registered office at Second Floor, Megh Malhar, Apartment, Plot-94, Nr. Sosiyo Circle, U.M. Road Surat, Gujarat-395210.

¶46

CP(IB)/153(AHM)/2021

¶47

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶48

3 of 25

¶49

On perusal of Part-III of the Form-V reveals that the Applicant/Operational Creditor has not named anyone under section 13 (1)(c) of the Code to act as Interim Resolution Professional (IRP) .

¶50

On perusal of Part-IV of the Form-V reveals that the Applicant has claimed operational debt for an amount of USD 747796.90 equivalent to Rs. 5,59,16,288.86 calculated at the exchange rate of 1 USD = 74.7747 as on 02.07.2021.

¶51

It is stated that the debt originates from the purchase of Yuemei Laser Bridged and Computerized Embroidery Machines ( “Goods” ) by the Corporate Debtor from the Operational Creditor.

¶52

It is stated that the Corporate Debtor approached the Operational Creditor for the purchase of said goods on the agreed payment term.

¶53

CP(IB)/153(AHM)/2021

¶54

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶55

4 of 25

¶56

Thereafter, a contract was entered into between the Applicant and the Respondent on various dates. Details of which are provided below:-

¶57

(I) Sales contract bearing no. MC20190604 dated 04.06.2019;

¶58

(II) Sales contract bearing no. MC20190606 dated 06.06.2019;

¶59

(III) Sales contract bearing no. MC20190612 dated 12.06.2019;

¶60

(IV) Sales contract bearing no. MC20190706 dated 06.07.2019;

¶61

(V) Sales Contract bearing no. MC20190706 dated 26.07.2019.

¶62

(Copies of the sales contracts are annexed at the Annexure-II)

¶63

Pursuant to the sales contracts, the Operational Creditor made available the said Goods that were duly inspected by the Corporate Debtor. The Corporate Debtor issued „Confirmation Letter of Quality and Payment‟ vide letter dated 04.06.2019, 20.06.2019, 08.07.2019, 14.08.2019 and 26.08.2019, inter alia, acknowledging the quality of the goods etc.

¶64

CP(IB)/153(AHM)/2021

¶65

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶66

5 of 25

¶67

The Goods were supplied by the Operational Creditor

¶68

under the following invoices:-

¶69

*Sr.*	*Invoice No.*	*Dated*	*Amount*
*No.*			*(USD)*
1.	MHJ2019000376E	19.06.2019	165,345.60
2.	MHJ201900416E	21.06.2019	145,191.30
3.	MHJ2019000440E	01.07.2019	135,760.00
4.	MHJ2019000498E	09.08.2019	178,600.00
5.	MHJ2019000548E	26.08.2019	148,800.00
	*TOTAL INVOICE AM* *(USD)*	*OUNT*	*773,696.90*

¶70

(Copies of the Invoices are annexed as Annexure-II).

¶71

The Operational Creditor has attached at Annexure - 2D the copies of the Bills of Lading.

¶72

It is stated that the Corporate Debtor despite accepting delivery of the goods without any protest and demur, failed to make payment as per the agreed payment schedule.

¶73

The Operational Creditor has been following up with the Corporate Debtor for overdue payments and for which an

¶74

CP(IB)/153(AHM)/2021

¶75

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶76

6 of 25

¶77

email dated 17.12.2019 was written, however, no payment was made.

¶78

The Operational Creditor issued the demand notice dated 13.12.2021 through its Advocate under Section 8(1) of the IBC, 2016 through email which is attached as Annexure-I.

¶79

It is stated that despite the receipt of the demand notice by way of email no payments neither any reply was received within the prescribed period.

¶80

As regards the date of default Operational Creditor has given different dates. Since as per the agreed payment terms, payment fell due within 120 days from the date of shipping noted in bill of lading. The first date of default is mentioned as 20.10.2019 and the last of default is mentioned as 26.12.2019. The applicant had relied upon the following documents:-

¶81

1. Sales Contract Bearing No. MC20190604 dated 04.06.2019

¶82

2. Sales Contract Bearing Sales Contract Bearing No. MC20190606 dated 06.06.2019

¶83

CP(IB)/153(AHM)/2021

¶84

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶85

7 of 25

¶86

3. Sales Contract Bearing No. MC20190612 dated 12.06.2019

¶87

4. Sales Contract Bearing No. MC20190706 dated 06.07.2019

¶88

5. Sales Contract Bearing No. MC20190726 dated 26.07.2019

¶89

6. Commercial Invoice Bearing No. MHJ2019000376E dated 19.06.2019 for an amount of USD 165,345.60

¶90

7. Commercial Invoice Bearing No. MHJ2019000416E dated 21.06.2019 for an amount of USD 145,191.30

¶91

8. Commercial Invoice Bearing No. MHJ2019000440e dated 01.07.2019 for an amount of USD 135,760.00

¶92

9. Commercial Invoice Bearing No. MHJ2019000498E dated 09.08.2019 for an amount of USD 178,600.00

¶93

10. Commercial Invoice Bearing No. MHJ2019000548E dated 26.08.2019 for an amount of USD 148,800.00

¶94

11. Bill of Lading Bearing No. MC20190604 dated 04.06.2019

¶95

12. Bill of Lading Bearing No. MC20190604 MC20190606 dated 06.06.2019

¶96

13. Bill of Lading Bearing No. MC20190612 dated 12.06.2019

¶97

CP(IB)/153(AHM)/2021

¶98

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶99

8 of 25

¶100

14. Bill of Lading Bearing No. MC20190706 dated 06.07.2019

¶101

15. Bill of Lading Bearing No. MC20190726 dated 26.07.2019

¶102

Confirmation Letters of Quality and payment dated 04.06.2019, 20.06.2019, 08.07.2019, 14.08.2019 and 26.08.2019 .

¶103

Reply was filed by the respondent under Inward Diary No. D724 dated 14.02.2024. It is affirmed by one Mr. Shubhansh N. Dawar, Director of the Respondent Company. The respondent, in defence, stated that:-

¶104

(I) No demand was issued.

¶105

(II) The Power of Attorney dated 09.07.2021 is not effective.

¶106

(III) Demand Notice in Form -3 was sent on three emails viz.

¶107

(i) [email protected],

¶108

(ii) [email protected], and

¶109

(iii) [email protected]

¶110

None of these three IDs belong to the company. The

¶111

Email ID of the Company is [email protected].

¶112

(IV) The Email ID- [email protected] is of

¶113

Chirag Impex (HK) Ltd., who is the buyer of the

¶114

CP(IB)/153(AHM)/2021

¶115

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶116

9 of 25

¶117

goods from the Petitioner and Chirag Impex (HK) has sold the goods to the Respondent Company and it was not the Petitioner who sold the goods.

¶118

(V) There are no sale transactions between the Petitioner and Respondent and no such evidence is produced in the petition.

¶119

(VI) The Bill of Lading produced in the Petition (Page 6572) has been named of Chirage Impex HK Ltd., evidencing that the goods were rooted through Chirag Impex HK Ltd.

¶120

(VII) Email correspondence produced at page no. 73 is with Chirag Impex HK Ltd., and not with Respondent Company and, hence, Petitioner‟s documents themselves state that the transaction is between the Petitioner and Chirag Impex HK Ltd.

¶121

(VIII) Respondent Company has imported goods from Chirag Impex HK Ltd. Particulars of import of goods and its billing details are given table in the below:-

¶122

CP(IB)/153(AHM)/2021

¶123

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶124

10 of 25

¶125

CP(IB)/153(AHM)/2021 In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶126

11 of 25

¶127

The above goes to prove that the Respondent has imported the goods from Chirag Impex HK Ltd. Under para-d of the reply, the Respondent admits that Sales Contract as well as Confirmation Letter of Quality and payment was issued by the Respondent.

¶128

To the reply filed by the respondent, the Applicant has filed rejoinder under Inward Diary No. 3378 dated 20.06.2022 which is confirmed by Mr. Sahil Bhatia, Power of Attorney Holder. In rejoinder, the Applicant states as under:-

¶129

i. The Operational Creditor sold, supplied and delivered the goods under the sales contract. Details of which are provided again. That other condition precedent to the supply of said machine the Corporate Debtor issued Confirmation of Letter of Quality and Payment. Copy of which is attached as Annexure(II)(b) in the petition.

¶130

ii. The fictitious story which has been concocted by the Corporate Debtor in its reply is belied by the fact that the Bill of Lading attached in the application clearly

¶131

CP(IB)/153(AHM)/2021

¶132

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶133

12 of 25

¶134

reads the Operational Creditor as Shipper and Corporate Debtor as Consignee. Chirag Impex HK Ltd., as per the Bill of Lading as notifying party which is in order to inform the Shipper regarding the supply, transit and delivery.

¶135

iii. Chirag Impex HK Ltd., is a related entity of the Corporate Debtor and the Corporate Debtor is shareholder-cum-founding Member of Chirag Impex HK Ltd. Both Corporate Debtor and Chirag Impex HK Ltd., had common directors and shareholders. The relevant evidence that both entities are interlinked is annexed at Annexure R1.

¶136

iv. A copy of the Memorandum of Association of Chirag Impex HK Ltd., is also annexed as Annexure R-2.

¶137

v. The Corporate Debtor had relied upon and placed on record some invoices purporting that said invoices were raised for the supply of machine by Chirag Impex HK Ltd. However, the supply was made by the Operational Creditor and invoices on record are not correct and are under-priced and it may have been done with an intention to evade the customs duties.

¶138

CP(IB)/153(AHM)/2021

¶139

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶140

13 of 25

¶141

vi. Demand notice issued by the lawyer of the Operational Creditor under the instruction of the Operational Creditor and delivery by email dated 31.03.2020 to the then known and published email address of the Corporate Debtor.

¶142

vii. In order to prove the same, the Operational Creditor placed reliance of MGT-7 filed by the Corporate Debtor for the period September 2017 and September 2018 which evidences that the email address of Chirag is [email protected] .

¶143

viii. It is stated that there is a valid Existing Power of Attorney duly authorized under the Board to execute demand notice. In short, the defence of the Corporate Debtor is nothing but a moonshine towards the payment to the Operational Creditor.

¶144

In the additional affidavit filed by the applicant herein vide under Diary No. 5299 in terms of order dated 22.12.2023 directing the applicant to place the translated copy of certain documents attached along with the petition. In the additional affidavit, it is stated that the total 13 quantity of

¶145

CP(IB)/153(AHM)/2021

¶146

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶147

14 of 25

¶148

machines through 8 Bills of Lading were supplied for which 5 invoices totalling to USD 773696.90 were raised upon the Corporate Debtor and which are confirmed under the “Letter of Confirmation of quality and payment”.

¶149

It was further submitted that the Bill of Entry is the documents filed by the Corporate Debtor/importer with the Customs Department during the customs clearance procedure which is under self-declaration.

¶150

It is the contention of the applicant that in the Bill of Entry, the list of machines is equivalent to the machines supplied by the Operational Creditor and that the Operational Creditor is the consignor of the goods.

¶151

It is stated that the cost of the embroidery machine imported by the Corporate Debtor is ranging between USD 3309.32 to USD 74,400 whereas the machines were invoiced by the said Chirag Impex HK Ltd., between USD 24,700 to USD 26,240. Another machine being lesser bridged was invoiced by the Operational Creditor at 1,65,345.60 while the Corporate Debtor under the Bill of

¶152

CP(IB)/153(AHM)/2021

¶153

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶154

15 of 25

¶155

Lading entry and invoice from the related party has priced the same machine at USD 64,780 not even half of than prevailing price of the machine which has cost loss to the exchequer.

¶156

It is submitted that the Corporate Debtor has vide letter dated 01.05.2018 has announced to the Operational Creditor that Chirag Impex HK Ltd., is to act as a Third Party Payer which clearly reveals that the Corporate Debtor is the buyer and just to facilitate the payment, the Corporate Debtor had asked Chirag Impex to make the payment. The said letter dated 01.05.2018 is annexed at Annexure - P-1.

¶157

It is submitted the Corporate Debtor made the payment of USD 135657 to Applicant on 21.09.2018 for which payment advice is attached at Annexue-P-2.

¶158

It is stated that the Corporate Debtor has made an advance payment of USD 25,900 in terms of the sales contract to Applicant. The Operational Creditor, thereafter, relied upon the judgment of Hon‟ble NCLAT in the matter

¶159

CP(IB)/153(AHM)/2021

¶160

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶161

16 of 25

¶162

of Mohit Mineral Ltd. Vs Nidhi Impotrade Pvt. Ltd., in Company Appeal (AT) (Insolvency) No. 905 of 2020 decided on 08.01.2021 wherein the Hon‟ble NCLAT held the demand notice issued by the advocate duly instructed by his client (Operational Creditor) is a valid demand notice.

¶163

Reply to the additional affidavit of the Applicant was filed by the Respondent and under Diary No. 1464 dated 21.02.2024. In reply, the Corporate Debtor states as under:-

¶164

I. Imports were done through Chirag Impex Ltd., Hong Kong.

¶165

II. No Bills of Entries or Bills of entry have been filed.

¶166

III. The demand notice was serve Chirag Impex only. Bills of Lading are false.

¶167

IV. Demand notice was not served.

¶168

We have heard the counsels for the both parties and perused the documents produced before us.

¶169

It is an admitted position from both sides that Confirmation Letter of Quality and payment was issued by

¶170

CP(IB)/153(AHM)/2021

¶171

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶172

17 of 25

¶173

the Respondent herein upon the Operational Creditor on various dates.

¶174

The sales contract is between the Operational Creditor and the Corporate Creditor.

¶175

Machines was supplied by the Operational Creditor and the valid Bill of Lading has been attached along with the application by the Operational Creditor.

¶176

It appears from the record to us that the Respondent - Corporate Debtor has made part payment through advance and also post receipt of the machines to the Operational Creditor. This factor has not been denied by the Corporate Debtor in his reply.

¶177

As regards to the issue of demand notice, we are of the view that the valid demand notice was issued by the Advocate of the Operational Creditor upon the Corporate Debtor and was served on the registered email ID of the Corporate Debtor. From the documents produced before us, it appears to us that post issue of the demand notice the Corporate has changed the email ID. As such, the

¶178

CP(IB)/153(AHM)/2021

¶179

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶180

18 of 25

¶181

objection that no demand notice was served by the Operational Creditor is not sustained.

¶182

As regards the various Bills of Entries attached by the Respondent, it appears that in order to evade the Custom Duty on the goods imported certain malpractices were adopted by the Corporate Debtor.

¶183

During the hearing, we have asked about the relationship between the Corporate Debtor and Chirag Impex HK Ltd., it was explained by the Learned Counsel for the Respondent that there is a relationship of father and son between the Corporate Debtor and Mr. Chirag of Chirag Impex HK Ltd., which is very clear to us while observing page-73 where the Applicant has attached an email from [email protected] addressed to the Applicant

¶184

herein and somewhere the middle of email it is written as under:-

¶185

“…My father is very much worried for your payment and arranging..”.

¶186

CP(IB)/153(AHM)/2021

¶187

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶188

19 of 25

¶189

In view of the following discussion, we are of view that the Applicant proved beyond doubt that there is debt, there is a default and the amount in default is more than Rs. 1.00 crore which meets the threshold limit as per section 4 of the Code and is well within the limitation for filing the present application. Accordingly, the Application filed under section 9 of the Insolvency and Bankruptcy Code for initiation of corporate insolvency resolution process against the Respondent/Corporate Debtor deserves to be admitted

¶190

Accordingly, in light of the above facts and circumstances, it is, hereby ordered as under:-

¶191

(i) The Respondent/Corporate Debtor M/s. Alliance Embroidery Machine Private Limited is admitted in Corporate Insolvency Resolution Process under section 9(5) of the Code.

¶192

(ii) As a consequence thereof, moratorium under Section 14 of Insolvency and Bankruptcy Code, 2016 is declared for prohibiting all of the following in terms of Section 14(1) of the Code:-

¶193

a. The institution of suits or continuation of pending

¶194

CP(IB)/153(AHM)/2021

¶195

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶196

20 of 25

¶197

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;

¶198

¶199

b. Transferring, encumbering, alienating disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein;

¶200

c. 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 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

¶201

d. The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.

¶202

e. The provisions of sub-Section (1) shall however, not apply to such transactions, agreements as may be notified by the Central Government in consultation with any financial sector regulator and to a surety in a contract of guarantee to a Corporate Debtor.

¶203

(iii) The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the

¶204

CP(IB)/153(AHM)/2021

¶205

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶206

21 of 25

¶207

Resolution Plan under sub-section (1) of Section 31 or passes an order for liquidation of Corporate Debtor under Section 33 of the IBC, 2016, as the case may be.

¶208

(iv) It is further directed that the supply of essential goods/services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during the moratorium period as per provisions of sub-Sections (2) and (2A) of Section 14 of IBC, 2016.

¶209

(v) The Operational Creditor has not proposed the name of IRP. Hence, this Tribunal hereby appoints Mr. Mahendra Prasad Jindal, having Registration No. IBBI/IPA-001/IPP00616/2017-2018/11073, Email ID :- [email protected] as per the panel suggested by IBBI for this Bench for the period of January, 1 to June 30, 2024. He shall conduct the Corporate Insolvency Process as per the Insolvency and Bankruptcy Code, 2016 r.w. Regulations made thereunder.

¶210

(vi) The IRP shall perform all his functions as contemplated, inter-alia, by Sections 17, 18, 20 & 21 of the IBC, 2016. It is further made clear that all personnel connected with the Corporate Debtor,

¶211

CP(IB)/153(AHM)/2021

¶212

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶213

22 of 25

¶214

its Promoter or any other person associated with the management of the Corporate Debtor are under legal obligation under Section 19 of the IBC, 2016 for extending assistance and co-operation to the IRP. Where any personnel of the Corporate Debtor, its Promoter or any other person required to assist or co-operate with IRP, do not assist or co-operate with the IRP the IRP is at liberty to make appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order.

¶215

(vii) This Adjudicating Authority directs the IRP to make a public announcement of the initiation of CIRP and call for the submission of claims under Section 15 as required by Section 13(1)(b) of the IBC, 2016.

¶216

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

¶217

(ix) The IRP shall be under a duty to protect and preserve the value of the property of the „corporate debtor company‟ and manage the operations of the

¶218

CP(IB)/153(AHM)/2021

¶219

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶220

23 of 25

¶221

corporate debtor company as a going concern as a part of obligation imposed by section 20 of the Code.

¶222

(x) The IRP or the RP, as the case may be shall submit to this Adjudicating Authority periodical report with regard to the progress of the CIRP in respect of the Corporate Debtor.

¶223

(xi) We direct the Operational Creditor to pay IRP a sum of Rs.2,00,000/- (Rupees Two Lakh Only) in advance within a period of 7 days from the date of this order to meet the cost of CIRP arising out of issuing public notice and inviting claims etc. till the CoC decides about his fees/expenses.

¶224

(xii) The Registry is directed to communicate a copy of this order to the Operational Creditor, Corporate Debtor and to the IRP and the concerned Registrar of Companies, after completion of necessary formalities, within seven working days and upload the same on the website immediately after the pronouncement of the order. The Registrar of Companies shall update its website by updating the Master Data of the Corporate Debtor in the MCA portal specific mention regarding admission of this Application and shall forward the compliance report to the Registrar, NCLT.

¶225

CP(IB)/153(AHM)/2021

¶226

In the matter of : M/s. Nanjing Mahoj Information & Technology Co, Ltd. Vs. M/s. Alliance Embroidery Machine Pvt. Ltd.

¶227

24 of 25

¶228

(xiii) The commencement of the Corporate Insolvency Resolution Process shall be effective from the date of this order.

¶229

(xiv) The Registry is further directed to send a copy of this order to the Insolvency and Bankruptcy Board of India for their record.

¶230

Accordingly, this Application CP(IB)/153(AHM)2021 is allowed and disposed of. A certified copy of this order may be issued, if applied for, upon compliance with all requisite formalities.

¶231

-sd-

¶232

-sd-

¶233

SAMEER KAKAR SHAMMI KHAN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

¶234

Munna/Steno

¶235