In the matter of JIJI INDUSTRIES LIMITED

CP(IB)/27/MP/2023 (An application under section 10 of the Insolvency and Bankruptcy Code, 2016) In the matter of: Jiji Industries Limited CIN No.: U27203MP2003PLC015775 Having its registered address at: 7, Nagarchi Bakhal, Behind Bartan Bazar, Indore, Madhya Pradesh- 452001 ……Corporate Applicant/Petitioner Order Pronounced on: 08.01.2025 Coram: Chitra Ram Hankare, Member (J) Kaushalendra Kumar Singh, Member (T)

Appearance: For the Applicant: Ld. PCS Mr. Pratik Tripathi

JUDGMENT 1. This present application was filed on 23.02.2023, by Mr. Gourav Mungad, director of M/s Jiji Industries Limited (Applicant) under section 10 of the Insolvency and Bankruptcy Code, 2016 (the Code) r.w. IBBI (Application to Adjudicating Authority) Rules, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against the corporate person i.e. the applicant herein. 2. Averments made by the applicant and as presented/argued by the learned PCS appearing for the applicant are summarized here as under: (i) Corporate person is engaged in the business of manufacturing of aluminum products, and production of aluminum windows, doors,

NCLT, INDORE BENCH CP(IB)/27/MP/2023 partitions, glazing, cartons, flat bars, heat sinks, rods, bars, channels, angles, and pipes. (ii) The corporate person was incorporated on 01.05.2003 and has been continuously working from 2003 till 2012, however, due to some financial crisis the corporate person has failed to continue its business thereafter. (iii) The corporate person has availed loan facility from bank which was paid in full till the year 2019 and thereafter no loan has been taken by the corporate person from banks, hence, there are no secured creditors remaining in the company to whom payment had to be done. (iv) The details of charges satisfied by the corporate person are as follows:

S. Charge ID Date of Date of Amount Charge Holder No. Creation Satisfaction name

1. 10291183 25.04.2011 19.02.2019 24,77,75,000/- Bank of Baroda 2. 10084338 17.11.2007 27.06.2011 14,62,09,000/- Punjab National Bank

3. 80063542 24.07.2003 27.06.2011 59,12,000/- Punjab National Bank

4. 90204049 24.07.2003 27.06.2011 69,50,000/- Punjab National Bank (v) The financial debt of Rs 4,20,57,394/- is outstanding on the part of the corporate person. (vi) The corporate person has purchased the material from various creditors and failed to make their payment in timely manner, hence, the operational debt of Rs 8,32,65,518/- is outstanding on the part of the corporate person against all the operational creditors and such debt is outstanding for the last 10 years.

NCLT, INDORE BENCH CP(IB)/27/MP/2023 (vii) Name and address of the financial creditor and operational creditors of the corporate person along with amount due to them as on 10.02.2023 are as under:

S. No. Name Address Category Amount due in Rs 1 Gaurav 7, Nagarchi Bakhal Behind Unsecured 1,98,26,299 Mungad Bartan Bazar, Rajwada, Indore, Financial M.P. Creditor 2 Om Prakash 7, Nagarchi Bakhal Behind Unsecured 5,85,875 Maheshwari Bartan Bazar, Rajwada, Indore, Financial M.P. Creditor 3 Shubh Labh Sharda House, Modi Mohalla, Unsecured 6,00,000 Sales Nimbhahera Financial Creditor 4 Vaibhav 7, Nagarchi Bakhal Behind Unsecured 2,10,45,220 Mungad Bartan Bazar, Rajwada, Indore, Financial M.P. Creditor TOTAL (A) 4,20,57,394 5 Divine 1, Sai Gangotri Vihar Operational 55,88,128 Aluminum Pvt Panchkuiya Road, Indore Creditor Ltd 6 Gandhar Oil Unit No. 2, Plot No. 2, Survey No. Operational 3,54,272 Refinery India 678/1/3, Village Naroli, Creditor Ltd Silvassa 7 Kanha 89, Kalani Nagar Indore, MP Operational 3,18,22,978 Aluminum Pvt Creditor Ltd 8 Kuchchal 9/47, Mittal Chambers Sapna Operational 72,96,649 Light Metal Pvt Sangeeta Main Road Indore, MP Creditor Ltd 9 MAPTRASCO 1, North Bridge Road, 24-08, Operational 16,43,311 High Street Center, Singapore Creditor 10 Mungad Plot No. 2/B and 3, Sector-A Operational 1,14,61,288 Aluminum Pvt Sanwer Road, Indore, MP Creditor Ltd

NCLT, INDORE BENCH CP(IB)/27/MP/2023

11 Star Novation Office No. 318, 2nd Floor, Old Operational 1,12,37,689 Pvt Ltd Building Software Technology Creditor Park, Electronic Complex, Indore, MP 12 Trident Exim 42, South Buona, Vista Road, 3- Operational 6,47,667 Pvt Ltd 15, Bayville Singapur Creditor 13 M/s Rahul 171-B, Vishwakarma Nagar, Operational 3,500 Gupta & Co. Indore, MP Creditor 14 MPPKVV GPH Campus, Polo Ground, Operational 3,94,085 Indore Creditor 15 Mungad 6, Nagarchi Bakhal Behind Operational 2,75,000 Aluminum Bartan Bazar, Rajwada, Indore, Creditor Industries M.P. 16 Prerna 304, Sukh Sunder Apartments, Operational 81,00,000 Enterprises 126-127C, Vaishali Nagar, Creditor Indore, MP 17 R. K. Metal 5-2-283/A Secundarabad, Operational 26,70,185 Corporation Telangana Creditor 18 Vani Exports Ludhiyana, Punjab Operational 17,70,766 Creditor TOTAL (B) 8,32,65,518 TOTAL (A+B) 12,53,22,914 (viii) Till the time, the corporate person had not made any repayment of its financial debt and operational debts and the corporate person has not been running its business since 2012, hence, there are no means for the corporate person to repay its debts. (ix) Board resolution dated 02.01.2023 was passed to consider and approve the proposal for initiation of CIRP for the corporate person. (x) A Special Resolution dated 24.01.2023 was also passed by the members of the corporate person under section 10(3)(c) of the Code for the purpose of initiation of CIRP of the corporate person.

NCLT, INDORE BENCH CP(IB)/27/MP/2023

3. This Adjudicating Authority vide order dated 03.03.2023 directed the applicant to serve the notices of hearing to all the creditors of the corporate person and also to advertise notice of hearing of the application in newspapers. In compliance of the said order dated 03.03.2023, the applicant has served the notices to the creditors of the company and has also published the notice in two newspapers namely “Free Press” English Daily and “Choutha Sansar” in Hindi Daily on 25.03.2023, informing the creditors and concerned persons about the filing of the present application for initiation of CIRP against the corporate person. An affidavit of service of notice and publication is also placed on record. 4. This Adjudicating Authority vide order dated 21.09.2023, directed the applicant to furnish a list of books of accounts available with them. In compliance to that the applicant furnished the required list through an affidavit and undertook to provide the same in case the application is admitted under section 10 of the Code. Further, the applicant in compliance of the said order filed an additional affidavit bringing on record invoices available with them and submitted that the corporate applicant had stopped its business in the year 2012 and creditors are related to period prior to the year 2012, more than 11 years old and not traceable, therefore it is difficult for them to find out all the invoices of the creditors. The corporate applicant has attached 6 invoices dated 30.09.2010, 03.10.2010, 27.03.2011, 03.04.2011, 25.06.2011, and 02.11.2010 amounting to Rs. 89,75,478/-. 5. This Adjudicating Authority vide order dated 16.05.2024, directed the applicant to file a list of trade receivables. In compliance of the same, the applicant provided the list of trade receivables, the same is given as under:

S. Name Amount in Rs Address Contact No. Email No. 1 Best Buy 4,41,68,869/- Fourth Floor 4A +447912675240 Internationalbest7@gmail.com International Parkes Building, 17/23 Parks Street, Jordan Kowloon Hong Kong

NCLT, INDORE BENCH CP(IB)/27/MP/2023

2 Bothra Metal & 10,84,791/- 5, Bothra House, 6A, +912222031566 Bothra.sunder@gmail.com Alloys Pvt Ltd Gr. Floor, 5 Assembly Lane, Dadi Seth Agyari, Kalbadevi, Mumbai 3 S.M.S. Metal 3,75,258/- 201, City Centre, +919827036912 info@sms.co.in Pvt Ltd 570 M G Road, Indore 4 S.P.M. Controls 3,05,000/- R S No. 686/1A/2, +9845448781 Spmcontrols202@gmail.com Opp. Ashok Ipon, Works Plant 1, Udyambag, Belgaum 5 Star Novation 6,01,07,204/- Free Zone, Zabel Ali, +971554737434 Starnovation72@gmail.com Middle East Dubai FZC Total 10,60,41,123/-

6. Further, vide order dated 07.06.2024 this Adjudicating Authority noted that approximately 10.60 crores of money are to be recovered from five parties and that around 12 crores and above amount is payable to the creditors out of which about 4.70 crores are related to the group concerns. For the same, this Adjudicating Authority directed the applicant to place on record as to whether those third party creditors have taken any steps to recover any amount from the applicant and also as to what steps the applicant have taken to recover the amount which is reflected in the trade receivables in the balance sheet. 7. In this context an affidavit has been placed on record whereby the applicant has submitted the following: (i) In the year 2012 corporate debtor faced financial crisis leading to discontinuity of business. As the company was not able to pay its outstanding debts, bank ceased and took control of the operation of company. (ii) Most of the balance are related to year 2010. There was a raid of excise department and bank had sealed the premises.

NCLT, INDORE BENCH CP(IB)/27/MP/2023 (iii) In year 2012, fire broke through the factory premises of the corporate person which destroyed the raw material and finished goods including the data preserved in the factory. Most of the records and data were destroyed in the fire. Therefore, basic files having record of communication etc. was destroyed and not available with the corporate debtor. At that time the incident was reported with police, excise and other department. (iv) After such incidence there is no communication with the parties in this regard as the business premises was destroyed and corporate person was not in a position to take recovery action against the parties. (v) The books of accounts of the corporate person reflects the balances of the creditors acknowledging the debt. The balance sheets of the company prepared year after year also reflects the debt and as such there is no issue of limitation in filing of the application. 8. The applicant vide affidavit dated 01.03.2024 has undertook to pay the CIRP cost as well as liquidation cost, as the case may be. 9. We have heard the learned PCS appearing on behalf of the applicant on the issue of admission of application filed under section 10 of the Code and have perused the relevant records and documents. It is noted that the business operation of the corporate person ceased in year 2012 following a fire that affected the factory. The ledger accounts provided by the applicant shows that a total amount of Rs 4,20,57,394/- is outstanding towards the financial creditors and an amount of Rs 8,32,65,518/- is outstanding towards the operational creditors. The corporate person has also provided the balance sheet for the financial year 2020-21 and 2021-22, along with a provisional balance sheet for the financial year 2022-23 made up to 10.02.2023, which discloses that the corporate person has Long term borrowings of Rs 4,20,57,394/-, Trade payables of Rs 7,00,51,984/- and other current liabilities of Rs 1,36,40,318/-. Further, the corporate person has Trade receivables of Rs 10,60,41,124/-, Cash of Rs 1,22,826/- and short-term loan

NCLT, INDORE BENCH CP(IB)/27/MP/2023 and advances of Rs 4,05,72,989/-. For ready reference provisional balance sheet as available on record is reproduced as under:

Provisional Balance Sheet as on 10.02.2023 Particulars Note Figures as at the end of Figures as at the end No. current reporting period of previous reporting period Rs. Rs. A. Equity and Liabilities 1. Shareholders’ Funds a. Share Capital 1 9,39,98,400 9,39,98,400 b. Reserve and Surplus 2 (7,85,43,519) (7,85,43,472) c. Money Received against share warrants - - 2. Share application money pending allotments - - 3. Non-current liabilies a. Long-term Borrowings 3 4,20,57,394 4,08,94,044 b. Deferred tax liabilities (net) 55,32,363 55,32,363 c. Other long term liabilities - - d. Long term provision - - 4. Current Liabilities a. Short term borrowings - - b. Trade payables A. Total outstanding dues of micro enterprises & small enterprises 5 7,00,51,984 7,00,51,984 B. Total outstanding dues of creditors other than micro enterprises & small enterprises 4 1,36,40,318 1,36,40,318 c. Other Current Liabilities - - d. Short-term provisions 14,67,36,939 14,55,73,637 TOTAL B. Assets - - 1. Non-current assets - - a. (i) Property, plant and equipment - - (ii) Intangible Assets - - (iii) Capital Work in progress - - b. Non-current investments c. Deferred Tax assets d. Long term loans and advances e. Other non current assets 2. Current assets a. Currents investments 8 10,60,41,124 10,60,41,124 b. Inventories c. Trade receivables 6 1,22,826 1 ,22,873 d. Cash and cash equivalents - - e. Short term loans and advances 7 4,05,72,989 3,94,09,639 f. Other current assets 14,67,36,939 14,55,73,636 TOTAL

10. In compliance of the order dated 21.09.2023, the applicant has submitted only six invoices amounting to Rs 89,75,478/-. When inquiring about the efforts made by the applicant to recover the trade receivables

NCLT, INDORE BENCH CP(IB)/27/MP/2023 amounting to ₹10,60,41,124/-, as reflected in the balance sheet, and whether the creditors of the corporate person had taken steps to recover their dues, the applicant claimed that most dues date back to 2010. The applicant further stated that due to the fire in 2012, most of the goods and records got destroyed. 11. After considering these facts and circumstances, it is clear that the corporate debtor is unable to repay its debts and has defaulted in its repayment of the debt as admitted by the corporate person and reflected in the balance sheet for the year 2020-21, 2021-22 and the provisional balance sheet for the year 2022-23. Further, the present application is well within limitation as the corporate person has been admitting and acknowledging the debt in the balance sheet year after year till 2022-23. 12. We find no defects in the present application, hence, we pass the following order: ORDER (i) The application CP(IB)/27/MP/2023 is allowed. (ii) The corporate person M/s Jiji Industries Limited is admitted in the Corporate Insolvency Resolution Process under section 10 of the Code. (iii) The moratorium under section 14 of the Code is declared for prohibiting all of the following in terms of section 14(1) of the Code. (a) the institution of suits or continuation of pending suits or proceedings against the corporate person including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate person any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate person in respect of its property

NCLT, INDORE BENCH CP(IB)/27/MP/2023 including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate person. (iv) The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process until this Adjudicating Authority approves the Resolution Plan under sub-section (1) of section 31 or passes an order for liquidation of corporate person under section 33 of the Insolvency & Bankruptcy Code, 2016, as the case may be. (v) As proposed by the corporate person, we appoint Mr. Pankaj Shah having registration No. IBBI/IPA-001/IP-P02281/2021- 2022/13637, having address at: 112, Manas Bhawan, 11, RNT Marg, Indore, Madhya Pradesh- 452001, Email: pankajgshah@gmail.com to act as an Interim Resolution Professional (IRP) under section 13(1)(c) of the Code. He shall conduct the Corporate Insolvency Resolution Process as per the provisions of the Code r.w. Regulations made thereunder. (vi) The IRP so appointed shall make a public announcement of initiation of the Corporate Insolvency Resolution Process (CIRP) and call for submission of claims under section 15 as required by section 13(1)(b) of the Code. (vii) The supply of essential goods or services to the corporate person, if continuing, shall not be terminated or suspended, or interrupted during the moratorium period. The corporate person to provide effective assistance to the IRP as and when he takes charge of the assets and management of the corporate person. (viii) The IRP shall perform all his functions as contemplated, inter-alia, by section 17,18,20 & 21 of the Code. It is further made clear that all personnel connected with corporate person, its promoter or any other person associated with management of the corporate person are

NCLT, INDORE BENCH CP(IB)/27/MP/2023 under legal obligation under section 19 of the Code extending every assistance and co-operation to the Interim Resolution Professional. Where any personnel of the corporate person, its promoter or any other person required to assist or co-operate with IRP, do not assist or co-operate, the IRP is at liberty to make appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order. (ix) The IRP shall be under duty to protect and preserve the value of the property of the corporate person and manage the operations of the corporate person as a going concern as a part of obligation imposed by section 20 of the Code. (x) The Registry is directed to communicate a copy of this order to the applicant, IRP and the concerned Registrar of Companies, within seven working days and upload the same on website immediately after pronouncement of the order. (xi) The IRP shall also serve a copy of this order to the various departments such as Income Tax, GST, State Trade Tax, and Provident Fund etc. who are likely to have their claim against corporate person as well as the trade unions/employee’s associations so that they are informed of the initiation of CIRP against the corporate person timely. (xii) The commencement of the Corporate Insolvency Resolution Process shall be effective from the date of this order.

Sd/- Sd/- KAUSHALENDRA KUMAR SINGH CHITRA RAM HANKARE MEMBER (TECHNICAL) MEMBER (JUDICIAL) Ritika