In the matter of ECHO MOTORS AND AUTOMOBILES PRIVATE LIMITED

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Present: 1. Hon'ble Member (Judicial), Shri Rammurti Kushawaha 2. Hon'ble Member (Technical), Shri Yogendra Kumar Singh Atul Auto Limited In the Matter of Vs Echo Motors and Automobiles Private Limited Under Section U/s 9 ofIBC, 2016 Appearances (via video conferencing/physicaly) For Petitioner (s) : Mr. K.P. Vaishnav, Adv For Respondent (s) : None

ORDER Order pronounced in open court vrde separate sheets.

sd/- sd/- Yogendra Kunar Singh Rammurti Kushawaha Member (Technical) Member (Judicial)

Zeba (PS) any c t I rt * a hatl FPEE Of COST COFY CENtrHS' IO BE IIUE CO V of nil o6gr{At ,&ETAE ffi NATIONAL COMPAIYY LAW TBIBLINAL GIIWAEAIIBENCH GTIWAHATI CP (IB) No.5/GB,r2025 An application under Seoion 9 of the Inabency and Bafikruptc! Code, 201 6 lead with Rule 6 of the hsolvency and Bankruptcy (Application to Adjudicating Authoity) Rules, 2016, to iaitiate Corporate lrxobmcy Renlution Process;

Ifl the nfinet of: ATIJL AUTO LIMITED, [CIN No. L54100GJ1986PLC016991, Registered Office at Vill Shapar, Near Microwave Tower on Gondal. Highway, Rajkot, Gujarat 360024; ...Petitioner/Operatioual Creditot -Versus- ECHO MOTORS AND AUTOMOBILES PRWATE LII\,IITED, [CIN No. U50l02AS201lPTC0103r16l, Registered Office at Dharapur, Guwahati, Assam-781033. ... Respondent/Corporate Debtor Cotam: Kushawaha : Shri Rammurti Member (Judicial) Singh : Shri Yogendra Kumar Member (Technical)

Appearurces (thmryh ideo confaetcittg): Petitioner : For the Mr. K. P Vaishaav, (Adv) Respondent : For the None o Order pronouaced 20.08.2025

ORDER 1. This Company Petition is filed by Atul Auto Limited ("Operational Creditor") under Section 9 of the Insolvency and Banlruptry Code, 2016 ("Code") read with Rule 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 seeking initiation of the Corporate Insolvency Resolution Process ("CIRP") against Echo Motors And Automobiles Prirate Limited ("Corporate Debto/') on account of non-pa;nnent of an operational debt amounting to Rs. 3,35,36,330/- @upees Three Crores vLa

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NATIONAL COMPANY I.AW IRIBUNAL GIIWAEAIIBENCH ffiH GIIWAHATI cP (IB) No.5/GB/2025

Thirty -Five L,khs' Thirty-Six Thousand Three Hundred and Thirty Only) due and 22 .03 .2024 is the date of acceptance of debt by the Corporate Debtor. 2. Brief facts as stated by the Petitioner are as follows: 2.1 Operational Creditor (OC) is into the business of manufacnxing and selling 3 Wheelers in India, with the presence across 21 states with 200 pdmary and 130 secondary dealer nenvorks. Echo Motom And Automobiles Private Limited or Corporate Debtor (CD) was Dealer of OC and other Companies and is having its presence in Assam. CD has also got dealership of other vehicle manufacturing Companies. OC is supplying its 3 wheeler to CD since past several years. OC used to raise invoices for the said vehicles sent to CD and CD used to make adhoc payrnent qua the invoices sent by OC to CD. 2.2 T\ercafter h or around 2018-19 since the huge amount remained outstanding, there was a meeting of the officials and Directors of OC all.d CD ot 18/2/2019. In the said meeting the Director of Echo had admitted the amount of Rs. 4,13,36,999 / - payable to OC by CD. (A copy of the minutes of the meeting held at Ahrl Auto Limited between its dLectors and Mr. Kumar Gaurav, who is a director in both Echo Motors and Automobiles Private Limited and Skytght Automotives Private Limited, is attached to the petition as Annexure A Page No. l8).The Director also agreed to make payment to OC as per the minutes of meeting recorded and signed by the parties present in the meeting including Mr. Kumar Gaurav. Thereafter about an amount of around Rs. 80 lakh was paid by CD to OC. 2.3 Skylight Automotives Prirate Limited is the company to which the agenry of OC was allegedly transferred from CD. 2.4 Despite issuing of cheques to OC by CD, the said cheques were dishonored on being deposited by OC. OC therefore had filed Criminal Complaint Nos. 2485 arrd 3785 of 2021 for dishonourment of cheques issued by CD upon OC. 2.5 Thereafter, on or about January 2024 a Writ Petition (Criminal) No. 3 of 2024 was filed by CD before the Gauhati High Court for quashing the said Criminal

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Complaint. In order dated 22/3 /2024 the Honble Gauhati High Coud has recorded CD's acceptance of liability to OC. 2.6 Despite promises and aszurances given, CD has failed to clear the dues of OC and therefore OC is constrained to issue this notice calling upon CD to clear the outstanding dues. Therefore the OC sent the notice to the CD on o1 about 2L/r0/2024. 2.7 Despite having received the notice the CD has failed to make any payment and therefore there is more reason that the CD has lost its financial substratum and therefore the proceedings under IBC may be initiated against CD. 3. Heard the Learned Counsel for the Petitioner and perused the records available on file. Despite of ganting multiple opporrunities, the Corporate Debtor failed to enter appearance or file a reply. Accordingly, vide order dated 02.05.2025, the Corporate Debtor was proceeded ex parte. As a result, the claim of the Operational Creditor remains uffebutted and uncontested. 4. Before we proceed with the facts of the present case, the statutory framework regardurg the Apptcatioo under Section 9 of the Code needs to be recapitulated. An application under Section 9 of the Code can only be filed after the delivery of a demand notice as provided under Section 8 of the Code. 5. Section 8 of the Code requires the Operational Creditor, upon the occurrence of default, to deliver a Demand Notice for unpaid Operational Debt. Furthermore, Section 8(2) specifies that the Corporate Debtor must, within 10 days of receiving the Demand Noticg inform the Operational Creditor of any existing dispute. Under Section 9(1), if Operational Creditor does not receive payment from the Corporate Debtor or notice of the dispute under Sub-section (2) of Section 8, may file an Application under Section 9(1) of the Code. 6. The Tribunal notes that the Operational Creditor issued demand notices dated 18.10.2024 in the prescribed Form which was sent on 21.10.2024 and was duly served on 24.10.2024 (Copy of the tracking report of t}le notice is attached to the petition in Page No 305-306). Additionally, in compliance with the directions of the Hon'ble NCLi Guwahati B erch ide order dated 25.03.2025, the Registry served notice upon al]y La atl h

NATIONAL COMPAI{Y LAW TRIBUNAL ffiE GUWAIIATIBENCH trffi'ri# GUWAEATI CP (IB) No.S/GB/Zl2s the Corporate Debtor on 25.03.2025. The same was served to the Corporate Debtor on 03.04.2025. The said notice, along with a copy of the order, requted the Corporate Debtor to file its reply within 1 0 days from the date of receip. Despite service of notice and grant of multiple oppornrnities, the Corporate Debtor failed to enter appearance or file a reply. As a result, the Corporate Debtor was proceeded ex parte id.e otder dated 02.05.2025. 7. In view of the foregoing discussion and upon perusal of the material available on record, this Adjudicating Authority is satisfied that: a) The Operational Creditor supplied 3-wheelers to the Corporate Debtor in the ordinary course of business and raised invoices from time to time. The Corporate Debtor initially made ad-hoc payments but subsequently defaulted in clearing the dues. As per the application, the total operational debt presently outstanding is r3,35,36,330/-. b) A meeting was held on 18.02.2019, wherein the Director of the Corpolate Debtor, Mr. Kumar Gaurag admitted liability of t4 ,13 1361999 / -, and undertook to repay the dues as recorded in the minutes of meeting.(Copy of the minutes of the meeting is attached as Annexure A Page No.18 of the Petition).Subsequently, part payments of approximately t80 lakhs were made. Thereafter Skylight Automotives Private Limited a Company in which the dtector namely Mr. Kumar Gaurav has allegedly transferred the agency of OC from CD to Skylight. c) Several cheques issued by the Corporate Debtor were dishonoured upon presentation. This led to the filing of Cdminal Complaints Nos. 2185 and 3785 of 2021 under the Negotiable Instrurnents Act, 1881 before the court of Addl. CJM, Rajkot, Gujarat. d) The Corporate Debtor then approached the Hoo'ble Gauhati High Court by filing Writ Petition (Criminal) No. 3 of 20?11, seeking quashing of the Criminal Complaints No 3785 of 2021.\n the order of Hon'ble Gauhati Iligh Court dated ?2.03.2024, it was recorded the admission of liability of 11,30,36,330/-by the Corporate Debtor to the Operational Creditor. This admission of debt, tho"gh lower than the claimed amount, has remained undisputed.

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** -o irilt\ ffi$ NAIIONAL COMPANY LAW TRJBI'NAL GIIWAIIAII BENCE H.iHSffi GTIWAEATI cP @) No.5/GB/2025 e) The Tribunal notes that the proceedings before the Ilon'ble Gauhati High Court stard stayed in view of the pendency of the original criminal complaints before the Addl. CJM, Rajkot, and therefore, no final determination has been made on the criminal side. However, the admission of liability of 11,30136,330/- in judicial records is significant for the present proceedings. f) The Operational Creditor has complied with all statutory requirements, including issuance of demand notice dated 18,10.202l h the prescribed Form, zubmission of invoices. Further, no payment has been made by the Corporate Debtor towards the outstanding admitted debt, and no record of pre-existing dispute has been substantiated within the prescribed period of 10 days. g) The Adjudicating Authority is, therefore, satisfied that there exists a default in respect of an operational debt of at least <11301361330/-, duly zupported by documentary and judicial records, which remains unpaid despite demand which is above the threshold limit as per the ootification dated 24.03.2020 aadeby the Ministry of Corporate A-ffairs. h) The above Company Petition, being fi1ed or 19.O2.2O25, is within the three year from the date of acceptance of default i.e, 22.03.202l which is within the limitation period allowed under the Limitation Act, 1963. i) The default in payment of the said operational debt has occurred; j) No pre-existing dispute has been demonstrated by the Corpotate Debtor; 8. Accordingly, the petition is complete in all respecs and satisfies all the legal requirements for admission under Section 9 of the Code. The application under Section 9 of the Code found to be complete and is admitted for tle purpose of initiation of the Corporate Insolvency Resolution Process against the Corporate Debtor. 9. Accordingly, the above Company Petition No. CP (LB)/5/GB/2025 is hereby allowed and initiation of CIRP is ordered against Echo Motors AIld Automoblles PriYate Limited, under Section 9 of the Code read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, $,ith the following directions:

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9.1 The Operational Creditor has not suggested the name Insolvency professional to peform the duties of the IRP. Therefot this Bench from the panel of Insolvenry Resolution Professionals hereby appornts Mr. Bishal Agarwal, an Lnsolvenry Professional registered with the lnsolvency and Banlruptcy Board of lndia (lBBl) having Registration No. 1BB1/1PA-002 /IP-N01294/2024-2025 / 14446 havng Registered Office at Ward Number 4, Amtala, Barpeta Road - 781315, Assam and Registered Email: ip. bishalagarwal@gmail.com as the IRP to carry out the firnctions as prescribed under the Code. 9.2 The Operational Creditor shall deposit an amourt of Rs, 3,00,000/- (Rupees Three Lakhs only) towards the initial CIRP costs by way of a Demand Draft drawn in favour of the IRP appointed herein, immediately upon communication of this Order. The IRP shall utilise the said amount stricdy for expenses, and not towards professional fees until decided by the Committee of Creditors ("CoC"). 10. As per Section 14 of the Code, and by the operation of lav,r, a moratorium is hereby imposed on the Corporate Debtor with immediate effect, which will remain in force during the insolvency resolution process. In terms of Section l4(1) of the Code, this Bench hereby prohibits: i. The institution or continuation of suits or proceedings against the Corporate Debtor, including execution of any judgment, decree, or order by any court, tribmal, arbitratioo panel, or authority; ii. The transfer, encumbrance, alienation, or disposal of any of the Corporate Debtor's assets or legal or beneficial interests therein; iii. Any action to foreclose, recover or enforce any security interest created by the Corporate Debtor; iv. The recovery of any property by an owner or lessot where such property is in possession of the Corporate Debtor. 10.1 The supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated, zuspended, or internrpted during the moratorium period.

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10.2 The provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Cental Government in consultation with any financial sector regulator. 10.3 The order of moratorium shall have effect ftom the date of pronouncement of this order till the completion of the corporate insolvenry 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. 10.4 The public announcement of initiation of CIRP shall be made immediately as specified under Section 13 of the Code. 10.5 During the CIRP, the management of the affairs of the Corporate Debtor shall vest in the IRP. The suspended board of directors and personnel of the Corporate Debtor shall extend all cooperation and provide access to all information and documents as required by the IRP/RP. 11. Accordingly, with the above observations and direction, CP(IB) No. 5/GB/2025 is admitted. 12. It is made explicit that the present order shall not, in any manner whatsoever, affect or prejudice the operation of any order passed by a lligher Court. 13. The Registry is directed to send e-mail copies of the ordet forthwith to all the parties and thet Ld. Counsel for information and for taking necessary steps. 14. Certified Copy of this order may be issued, if applied for, upon compliance of all requisite formalities. 15. FiIe be consigned to records sd/- sd/- Yogendta Kumat Singh Rammurti Kushawaha Member (Techdcal) Member (Judicial)

2f Signed this on day ofAugttst, 2025 Nih'ta (LRA)

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