In the matter of Karani Techtex Print Private Limited

Anapplication under section 7 oftheInsolvencyand BankruptcyCode,2016read withRule4 of theInsolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Inthe matter of: Small Industries DevelopmentBankofIndia. … Financial Creditor Versus Inthe matter of: M/s KaraniTechtex Print PrivateLimited. …CorporateDebtor

Order Pronounced on : 02/01/2025 Coram: Mrs. BidishaBanerjee, Member (Judicial) Mr. D.Arvind,Member (Technical) Appearance: 1. Mr.Nikunj Berlia, Adv. ]For theFinancial Creditor 2. Mr. Mosarat Reyaz, Adv. ] 3. Ms.Urvashi Jain, Adv. ]

Per: Bidisha Banerjee, Member (Judicial) 1. The Court convened by hybrid mode today.

2. Ld. Counsel for the Financial Creditor was heard. None appeared on behalf of INTHENATIONALCOMPANYLAWTRIBUNAL, SPECIALBENCH-I,KOLKATA

C.P (IB) No.145/KB/2024 the Corporate Debtor since inception and despite repeated notices and therefore, the Corporate Debtor was set ex partebyorder order dated 18thSeptember2024.

3. However, at the closure of hearing, we have permitted written notes of argument to be filed within three days. While the Financial Creditor chose to file written notes of arguments, Corporate Debtor did not, hence, we proceed to file the matteronthe basis ofmaterials available onrecord. BriefBackground 4. This C.P has been preferred under section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Small Industries Development Bank of India, (hereinafter referred to as the Financial Creditor) for initiation of Corporate Insolvency Resolution Process in respect of M/s Karani Techtex Print Private Limited,acorporateentity (hereinafter referred to as theCorporate Debtor). Contentions oftheFinancialCreditor 5. The Financial Creditor had sanctioned financial assistance of Rs.2,21,00,000/- (Rupees Two Crore Twenty One Lakhs only) in three tranches to the Corporate Debtor byentering intothree loan agreements which are, thefollowing: i. Agreement dated 23rd day of March, 2017 for Rs. 40,00,000/- (Rupees Forty Lakh only) Annexure-F, page 55to 63oftheapplication; ii. Agreement dated 8th day of December, 2017 for Rs. 40,00,000/- (Rupees Forty Lakh only) AnnexureF- Page 64to 73ofthe application; iii. Agreement dated 3rd day of July, 2020 for Rs. 41,00,000/- (Rupees Forty One Lakh only( Annexure- F- Page 74 to 97 of the application) with the Financial Creditor. 6. The Financial Creditor issued a letter of Intent dated 24/02/2027 (Annexure E- Page 28 to 37 of the application ) and a modified letter of Intent dated 13/03/2017 for sanction of loan of Rs.1,40,00,000/- (Annexure E), letter of Intent dated 07/12/20217 for sanction of term loan of Rs. 40,00,000/ Annexure-E along with letter of intent

INTHENATIONALCOMPANYLAWTRIBUNAL, SPECIALBENCH-I,KOLKATA

C.P (IB) No.145/KB/2024 dated 02/07/2020 for working Capital assistance under TWARIT scheme for Rs.41,00,000/-(AnnexureE). 7. The said amounts were disbursed from the accounts of the lender to the Corporate Debtor as would be evident from the statements of accounts reflecting the disbursement ofa sum ofRs.2,21,00,000/- (Annexure-G).

8. The Master data of the Corporate Debtor with the Ministry of Corporate affairs under the index of charges reflects the Loan amount of Rs.41,00,000/- and Rs. 2,41,50,000/-from the Charge Holder beingtheFinancial Creditor (Annexure-H).

9. The Corporate Debtor vide three Balance Confirmations dated 18/072023 has duly acknowledged the dues payable to the Financial Creditor on 25/08/2023, Copies whereof are attached withthe application as Annexure-I.

10. The details of the computation of amount of default are reflected in a tabular statement oftheFinancial Creditor which forms Annexure-J to theapplication.

11. The securities held from the Corporate Debtor are mentioned in a schedule of Annexure-K ofthe application.

12. Record of default with the information Utility has been submitted on 20/12/2023as AnnexureL to theapplication.

13. Copies of Statements evidencing payment and certificate under the Bankers Book EvidenceAct, 1891are also filed as inAnnexure- Mto theapplication.

14. By a Deed of Hypothecation dated 23/03/2017 made and executed between the Financial Creditor and the Corporate Debtor herein, the Financial Creditor gave financial assistance in the form of term loan of Rs. 140 lacs (Rupees One Hundred Forty Lakh only) together with interest, further interest, additional interest, penal

INTHENATIONALCOMPANYLAWTRIBUNAL, SPECIALBENCH-I,KOLKATA

C.P (IB) No.145/KB/2024 interest, costs, charges, expenses and all other monies as stipulated in the Loan Agreement to theCorporate Debtor (Annexure-N)to theapplication.

15. By another Deed of Hypothecation dated 08/12/2017 made and executed between the Financial Creditor and the Corporate Debtor herein, the Financial Creditor gave financial assistance in the form of term loan of Rs.40 lacs (Rupees Forty Lakh only) and bank guarantee limit of Rs. 11.50 lakh (Rupees Eleven Lakh Fifty Thousand only) together with interest, further interest, additional interest, penal interest, costs, charges, expenses and all other monies as stipulated in the Loan Agreement to the Corporate Debtor as inAnnexure –N totheapplication.

16. The Financial Creditor has issued a recall notice dated 7th June 2023 (Annexure-N) upon the Corporate Debtor demanding the payment of Rs.1,75,93,515.43 along with interest, but despite receipt of the recall notice dated 7th June2023theCorporate Debtor has not paidtheoutstanding loan amounts.

17. The total default as on 10thFebruary 2024stands at Rs. 1,66,48,991.75/- and the Corporate Debtor was declared NPAon8/11/2021.

18. The Financial Creditor filed this present application on 08/03/ 2024 and had duly served the application upon the Corporate Debtor, the matter appeared before this Tribunal for the first time on 22nd May,2024, when this Tribunal was pleased to direct the registry to issue notice to the Corporate Debtor and to file reply affidavit by the Corporate Debtor, the matter was again listed on 18/09/2024 where despite notice none appeared for the Corporate Debtor, and accordingly the matter was fixed ex-parte and listedfor hearing on11/11/2024.

19. The date of default is 8th November 2021 being date of declaration of Corporate Debtor as aNon Performing Asset bytheApplicant.

INTHENATIONALCOMPANYLAWTRIBUNAL, SPECIALBENCH-I,KOLKATA

C.P (IB) No.145/KB/2024 20. The Corporate Debtor is in default of payment of financial debt amounting to Rs.1,66,48,991.75 as on10thFebruary, 2024.

21. As such, the claim of the Applicant is within limitation. Accordingly, this application maybe admitted. AnalysisandFindings 22. We have considered the submissions made by Ld. Counsel Mr. Nikunj Berila appearing for the Financial Creditor and considered the materials on record which are neither denied nor disputed or controverted by the Corporate Debtor and should be deemed tobe admitted onthebasis ofdoctrine ofnon-traverse.

23. The Financial Creditor has been successfully able to establish its claim of Rs. 1,66,48,991.75 as on 10th February 2024, which is way above the threshold.The Financial Creditor has been able to establish that the Corporate Debtor was declared NPA on 08/11/2021 and therefore this petition filed in March 2024 is well within the period of limitation prescribed under Article137of theLimitation Act.

24. Further, it is evident that vide three balance confirmations as Annexure-I, the Corporate Debtor has duly acknowledged its dues payable to the Financial Creditor and therefore boththe“debt” as well as the “default”isestablished.

25. That there is no iota of dispute in regard to the nature of debt being the “financial debt” as the disbursement from the accounts of the lender to the corporate debtoris established.

26. In view ofsuch, we admitthepresent petition and pass thefollowing orders:-

ORDER

INTHENATIONALCOMPANYLAWTRIBUNAL, SPECIALBENCH-I,KOLKATA

C.P (IB) No.145/KB/2024 i. The application filed by the Financial Creditor under section 7 of the Insolvency & Bankruptcy Code, 2016 for initiating Corporate Insolvency ResolutionProcess against theCorporate is hereby admitted. ii. Moratorium is declared for the purposes referred to in Section 14 of the Insolvency & Bankruptcy Code, 2016. The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for thesubmissionofclaims under Section 15. iii. Moratorium under Section 14of the Insolvency & Bankruptcy Code, 2016 prohibits thefollowing: a) 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 orother authority; b) Transferring, encumbering, alienating or disposing of by the corporate debtor 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 debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assetsand Enforcement of Security InterestAct, 2002(54 of 2002); d) The recovery of any property by an owner or lessor where such property is occupied byorin thepossession ofthecorporate debtor.

INTHENATIONALCOMPANYLAWTRIBUNAL, SPECIALBENCH-I,KOLKATA

C.P (IB) No.145/KB/2024 v. The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated, suspended, or interrupted during moratorium period. vi. The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sectorregulator. vii. The order of moratorium shall have effect from the date of admission till thecompletion ofthe corporate insolvency resolution process. viii.Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of corporate debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as thecase maybe. ix. Necessary public announcement as per Section 15 of the IBC, 2016 may bemade. x. The Financial Creditor has proposed the name of Mr. Madhur Agarwal having registration No.IBBI/IPA-001/IP—P00653/2017-2018/11127 mobile no. 9830066008 is hereby appointed as Interim Resolution Professional for ascertaining the particulars of creditors and convening a Committeeof Creditors forevolving aresolution plan.

INTHENATIONALCOMPANYLAWTRIBUNAL, SPECIALBENCH-I,KOLKATA

C.P (IB) No.145/KB/2024 xi. The Interim Resolution Professional should convene a meeting of the Committee of Creditors and submit the resolution of the Committee of Creditors and shall identify the prospective Resolution Applicant within 105days from theinsolvency commencement date.

xii. The Financial Creditor/Applicant is directed to deposit Rs. 3,00,000/-(Rupees Three Lakhs Only) with the IRP appointed hereinabove within three days from this order. IRP can claim the preliminary expenses and fees subject to the approval by the CoC and after constitution of CoC.

xiii.Registry is hereby directed under section 7(4) of the I.B.Code, 2016 to communicate the order to the Financial Creditor, the Corporate Debtor and to the I.R.P.bySpeed Postas well as through e-mail.

10. List the matteron10/02/2025for thefiling ofthe Progress Report. 11. Certified copy of the order may be issued to all the concerned parties, if applied for, uponcompliance with all requisiteformalities.

(D.Arvind) (Bidisha Banerjee) Member (Technical) Member (Judicial)

INTHENATIONALCOMPANYLAWTRIBUNAL, SPECIALBENCH-I,KOLKATA

C.P (IB) No.145/KB/2024 Order signed on this, the 2nd day of January, 2025 PJ.