In the matter of Sunpoint Trading Limited

JHAVERI TRADI AND INVESTMENT PRIVATE LIM ITED ........Applicant Vs SUNPOINT T ING LIMITED ....Respondent Order delivered on 29/08/2024 Coram: Mr. Shammi, Hon'ble Member (J) Mr. Sameer, Hon'ble Member (T) PRESENT: For the Applica For the The is fixed for the pronouncement of the order. The order is pronounced in Court, vide separate sheet.

=r/ SHAMMI KHAN MEMBER (TE !cAL) MEMBER (JUDtCtAL)

SEN

BEFORE THE ADJUDICATING AUTHORITY NATIONAL COMPANY LAW TRIBUNAL COURT.I, ATIMEDABAD BENCH cP (rB)/ 14e(AHMl2o24 (An op ication under section 7 of the Insoluency q"nd. BankrtLp code, 2016 read utith Rule 4 of the Insoluencg and. Bankrup c!/ (tlpplicatiort to Adjudicating Authority) Rules, 2015)

Int matter of M/s. Sunpoint Trading Limited, Jhaveri ding and Investment private Limited Having dress at: 410 Walt Street, Opp. Orient Club, Ellisbri Ahmedabad, , Gujarat- 80006. ..Applicant Financial Creditor. / VERSUS Sunpoin Trading Limited [crN: I OgcJ 988PLCO O293I 1 1 Having it Registered Office at: 3, Ravip p Apartment, B / s. Nav t House Memnagar, Ahmeda d, Gujarat-380052. ...Respondent/Corporate Debtor Order Pronounced on 29.08.20124 CORAM: SH. I TGIAN, HON'BLE MEMBER (JUDICIAL) SH. ER KAKAR, HON'BLE MEMBER (TECHNICAL) 4t \-/ cP(rB)/ 149/AHM/2024 In the matter of : 1of18

For the plicant Mr. Vikram Choudhary, Advocate For the espondent Mr. Arjun Padhiyar, Advocate ORDER Bench] [Per:

1. The Present application is filed on 02.04.2024 by the App icant- M/s. Jhaveri Trading and Investment private Li ed (hereinafter referred to as "Financial creditorrr) ag st the Respondent- M/s. Sunpoint Trading Limited, fo y known as Sun Finlease (Gujarat) Limited (he inafter referred to as "corporate Debtor,r) under Sec on 7 of the Insolvency and Ba,kruptcy code, 2016 (he ,inafter referred to as 'IBc, 2oL6') read w-ith Rule 4 of Insolvency and Bankruptcy (Application to Adj icating Authority) Rules, 2016 (hereinafter referred .IB to (AAAI Rules, 2OL6,) for initiation of Corporate Inso ency Resolution Process (cIRp), to appoint Interim Re ution Professional (hereinafter referred to as ,.IRprr) and declare the moratorium for having defaulted pa. ent of its outstanding dues of Rs. l,g7rl0,424l-incl ing interest.

CP( I B)/ 1 49/ AH tvt/ 2 0 24 In the matter of : 2of18

2. sal of Part-I of the Form- 1 reveals that Finarrciat Cr itor - M/s. Jhaveri rrading and Investment private Lim ted was incorporated on 23.02.2000 under cIN: u51 9GJ2000PTC03T4rr, having registered office at 4ro Wa-Il Street, Opp. Orient Club, Ellisbridge, 380006.

3. This application has been f,rled by one Mr. Rajesh Nan bhai Jhaveri, being Director and authorised rep sentative of M/s. Jhaveri Trading and Investment Priv Limited who was authorised vide Board tion Reso Dated 27.03.2024. A copy of the Board Reso tion is annexed as Annexure-A.

4. Peru aI of Part-II of the Form- 1 revea-ls that the C 'rate Debtor - M/s. Sunpoint Trading Limited was inco rated on 2l 19gg under .O 1. CIN: L461 GJ 1988PLC oro293, having its registered office at: Ravipushp Apartment, B/s.Navneet House Mem ?gtr, Ahmedabad, Gujarat_3goo52.

5. Pe of Part-III of the Form- 1 reveals that the Finan iar creditor has named Mr. Gomti Ramchandra cP(rB)/ 149/AHM/2024 In the matter of : 3of18 ch udhary, having R"g. No. rBBr/rPA_oO1 /rP_P_ s /2022-2023 / 7427s, (emaiI id-itrarchou coml under section. 3 1 of the (1X Code to act as Interim Resolution Pro ssional (IRp). He has filed his written unication CO arrnexed with the Apprication as Form-2 AS r the requirement of Rure 9(r) of the Insorvency and Ban rptcy (Application to Adjudicating Authority) Rule, 2016 whose AFA is valid till 30. 06.2025. A copy ofF -2 is annexed \Mith the application as Annexure- c.

6. Part-of the Form- 1 revea-rs that the date of defaurt is 27.O 2023 and the total amount in default is Rs. 1, 7 ,LO,424/- (principal amount of Rs. I ,2S,OO,OOO/ _ +in erest of + Rs.9,68 ,2Ig /_ delay interest of Rs.2, 2,2O5).

7. Finan ia-l Creditor has relied upon the following docu cP(rB)/14s/Anitnz+ In the matter of : 4of18

.I

7/ cP(rB)/ 149/AHM/2024 In the matter of : 5of18

8. The ancia-l creditor has praced the facts though this Petitio in the following manner:-

The Corporate Debtor vide its request letter dated 22.o2.2023 has appried for availing Inter corporate Deposit (for short ,fCDr) of Rs. L ,2S,OO,OOO / _ from the Financial creditor on proposed terms and conditions. A copy of the request retter is annexed as Annexure-G, page. No. 40 of the application. II. The Financial creditor vide its Sanction Letter dated 25.02.2023 had sanctioned an ICD of Rs. r ,25,oo,ooo / - on such terms and conditions as enclosed in Annexure - I of sanction letter. A copy f Sanction Letter for ICD is annexed as Annexure-ate page no. 4l-42 of the application. m. e corporate Debtor vide its 1etter dated 6.02-2023 had requested the Financiar creditor to isburse the ICD of Rs. L,2S,OO,O0O/_ on following rms and dates as mentioned below: D/SBURSEMENT DATE 27.02.2023 cP(rB)/14e/AHM/2024 In the matter of : 6of18

25,00,000/ _ 28.02.202s 5U,U0,OOO/ 04.03.2023 3 o Loan Amount Rs. 1,2S,OO,OOO/ o _ Loan Tgpe: Inter Corporate Deposit o Loan Maturitg Date: Dagi 1BO. o ?rOose of Loan: Business Req uirement Interest Rate: 12% p.A. Default Rate: p.A, 12+3% if d.etaged. compounded Monthly. A copy of the said letter is annexed as Annexure- I at page no. 40 of the application. ru. The Short-Term Loan (ICD) Agreement came to be executed between the Financia_l Creditor and :orporate Debtor on 27.02.2023 wherein the orporate Debtor against the said ICD, has ted Demand promissory Note in favour of the 'ina,cia-l creditor. copies of the agreement and mand Promissory Note are a,nexed. as nexure-J and J- 1. e V. Financial creditor has disbursed the ICD ount to the Corporate Debtor on the agreed date d terms ald conditions. A copy of Bank cP(rB)/ 149/AHM/2024 In the matter of : 7of18 statement evidencing disbursement is annexed as Annexure-F at page no. 30-31.

VI. As per terms of ICD (Short_term Loan) Agreement, the corporate Debtor was to repay ICD amount within 180 days in 3 insta_llments as listed hereunder:- Date Amounl /Rs./ Particulars 50,o0,000 BYRTGS 27.05.2023 25,00,000 B].RTGS 31 .05.202s 5O,OO,0o0 BYRTGS 30.06.202s

VII. Upon tailure of repayment of ICD, the Financia_l reditor vide its letter dated OI.OT .2023, I .1O.2023, O 1 .O | .2024 and 04.O2.2O24 has anded the payment of overdue Inter_Corporate it along with interest as per agreed terms d conditions.

VIII. on 31.O 1 .2024, an amount of Rs. 1 ,37 ,IO,424 / _ emains due and payable by the Corporate Debtor gajnst the ICD loan facility which consists incipal Amount: _, Rs. l,2S,OO,OOO Interest: / cP(rB)/ 149/AHM/2024 In the matter of : 8of18

Rs.9,68 /- per ,279 @ I2.OO% Annum and De1ay Interest: Rs. 2,42,205/_ p.A @ S.OO% compounded monthly.

IX" Pursuant to the issuance of the demand letter dated OI.OZ.2023, 01.1O.2O23,01.0 1.2024 and 04 'o2'2o24, the Financial creditor has neither received reply from the Corporate Debtor nor received payment against its outstanding ICD loan facility.

9. On ssuance of the notice, the Corporate Debtor appe d though it's counsel and fired Affidavit in reply on a-lf of the corporate Debtor through one Mr. paras bhai Kam Sharma, being the Director of the Co rate Debtor under inward diary no. D3g53 dated 06.0 2024. A copy of Board Resolution is filed under inwar diary no. D4201 dated L1.O6.2O24. 10. In th reply, it is stated that:_ I. corporate Debtor is engaged in the business of viding financiar services and trading/investing s, securities and short term inter corporate \/' cP( r B )/ 1 49/AH t"t/ 2o 24 In the matter of : 9of18 financial ventures. During the course of F.y. 2023_ 24, due to sudden need of liquidity, the Corporate Debtor vide its letter dated 22.02.2023 requested the ICD of Rs. 1 ,2S,OO,OOO/ _ from the Financial creditor on proposed terms & conditions. The sarne ICD came to be accepted and disbursed by the Financial Creditor as per ICD agreement. II. However, owing to volatility and downfall of market' corporate Debtor was unable to service e interest and principal ICD amount. The orporate Debtor was much hampered and also ue to lack of funds, corporate Debtor is facing iffrculty to communicate its business as going roncern.

III. :onsidering the business relation with Financial reditor and prevailing market situation, the rporate Debtor pleads some reasonable time of er 6-8 months, time to fully repay the entire tstanding amount.

,zr. cP(rB)/ 149/AUUtzozc In the matter of :

1I. R"j inder was also filed on behalf of Financia_r creditor vid inward diary no. D4To2 dated lg.06.2024.In the rejo nder, it is stated that:- I. Financial creditor has issued numerous demand letters i.e., O L .OT .2023, 0 1.IO.2O23, O 1 .O 1 .2024 & 04 'o2 '2024 to the corporate Debtor. However, the Corporate Debtor neither responded to the aforesaid letter nor sought further time for the repayment of outstanding debt. Through this reply, the corporate Debtor for the first time raised frivolous issues i..., volatility and downfar of arket for the purpose of non_payment of financial s per the ICD agreement, the Corporate Debtor not made single payment towards the ICD after pleased to gralt any further time to the rporate Debtor for the repayment of ICD. t2. W submissions were filed by the Financial creditor AS 1 as by the corporate Debtor vide inward no. CP(IB)/149/AHM/, In the rnatter of :

D5 45 crated I r .o7 .2024 and. D555 1 dated 7 r .o7 .2024 tively. We have considered the sarne. 13. We have heard the counsels and perused the material on cord' It is noted that the corporate Debtor vide its let r dated 22'o2-2o23 requested Financia-r creditor for avai ing ICD for a sum of Rs. I,2S,OO,OOO/_. The said ICD was executed between the Financiar creditor and the orporate Debtor on 2Z .02.2023. The said ICD amo nt was duly disbursed in favour of the corporate r Debt and the corporate Debtor vide its letters dated 27.O '2023, 2g'02.2023 and 04-03.2023 accepted the loan receipt for an amount of Rs.5O,O O ,OOO/ _ , Rs.2 - arrd ,00,000/ Rs.5O,0 /_ O ,OOO respectively. , perusal of Bank Statement of Financia-l Credi r reveals that ICD amount was duly disbursed in favou of the Corporate Debtor on abovementioned dates.

It 14. is so noted that in compliarrce of the order dated 22.O8. o24 wherein this Tribunar has directed both the sides place original complete Minutes Book of board / ,/ cP(rB)/14s/Auinoz< In the matter of :

re lutions of their respective companies, both the sides ha e produced their originar minutes before this Tri unal' The order dated 23.og.2024 recor:ds as under:- "Todag, in terms of ertend.ed directions dated. 22.08.2024, the applicant as u.tell as the respondent haue produced their originar minutes f the book of board resolution, uthich, afier sal, were returned. to them. On 22.08.2024, me of the minutes of book of resorutions u)ere ept in the _fite were also returned to the 'espondent". 15. The nancial creditor has also e-filed on 2g.03.2024 the ecord of Defaurt issued by NesL in Form D wherein the tatus of Authentication of Defaurt is mentioned as A ENTICATED and date of default is mentioned as 27.O .2023 for an outstanding amount of Rs. 1, 7 ,10,424 / _ 16. As date of defaurt is mentioned as 27.os.2023 and the a plication is filed on o2.o 4.2024 for an outstanding t €unou of Rs. L,32,1,0,424/_ which meets the threshold limit s per section 4 0f the code and is well within the limita ion for filing the present application. \,/ cP(rB)/ 149/AHM/2024 In the matter of :

17. Th prese,t application is complete in terms of sec tion 7 (s) of the code' Hence, the apprication fired under SEC ion 7 (2) of the Insorvency and Bankruptcy code for ini tion of corporate Insolvency Resolution process st the corporate Debtor deserves to be admitted. 18. A ingly, in right of the above facts and circ mstances, it is, hereby ordered as under:_ (i) The Respondent /corporate Debtor- M/". sunpoint Trading Limited, is admitted in the corporate Insolvency Resolution process under Section T of he IBC, 2016. (ii) s a consequence thereof, the moratorium under ction 14 of the IBC, 2016 is declared for rohibiting a,l of the forlowing in terms of Section a(1) of the IBC, 2016. a-. the institution o/ s pending suils or p corporate debtor inc judgment, d_ecree or law, tribunal, arbit authoritg; transferring, enanmbering, alienating or rporate debtor any of al right or beneficiat ana action to foreclose, recouer or enforce anA securitg interest created ba the corporate /. cP(rB)/14s/Auinoz< \/' In the matter of : M/s.- debtor n respect of its propertA including anA action under the Securitiation and. Reconstruction of Financial Asse/s and Enforcement of security Interest e"i,-iboz; d. the recouery of ang propertg bg an ou)ner or /essor uhere ltch-propZn, is ocanpied bg or in thepossession of tie corporate debtor. e. The p uisions of sub_Section ) shalt (1 hotaeuer, not apilA to such trans.actions, agreements cs maa be notifi.ed. by the Central Gouernment in consultalion *iih ong financial sector regulator and. to a surety in a contract of guarantee to a Corporate i"Ltor. (iii) The order of moratorium under section 14 of the e shall come to effect from the date of this order il, the completion of the corporate Insolvency solution process or until this Adjudicating uthority approves the Resolution plan under sub-tion (1) of section 31 0r passes an order for iquidation of the corporate debtor under section 3 of the IBC 2016, as the case may be. (iv) owever, in terms of Section lae) b 14(3) of the ode, the supply of essential goods or services to e corporate debtor as may be specified, if ntinuing, shall not be terminated or suspended, interrupted during the moratorium period. The rporate debtor to provide effective assistance to e IRP as and when he takes charge of the assets d management of the corporate debtor. cP(rB)/ 149/AUntzozc In the matter of :

As proposed by the Financia-r creditor, we appoint CA Mr. Gomti Ramchandra Choudh ary, having Reg. No. IBBI/rPA-OO 1 /rP_P_O262s /2022_ 2O2s / 14275, Email id-under section 13 (1)(c) of the code to act as Interim Resolution Professiona-l (IRpl. He sha, conduct the corporate insolvency process as per the Insolvency and Bankruptcy code, 2016 r.w. Regulations made thereunder. ("i) The IRP so appointed shall a make public announcement of the initiation of Corporate Insolvency Resolution process call and for bmissions of claims under section 15, as ired by Section 13(1)(b) of the Code. (vii) e IRP shall perform a-lt his functions as ontemplated, inter_alia, by sections 17, Lg, 20 and, 1 of the code. It is further made crear that all rsonnel connected with the corporate debtor, its romoters, or any other person associated with the anagement of the corporate debtor are under gal obligation as per section rg of the code to nd every assistance and cooperation to the IRp. ere any personnel of the corporate debtor, its romoters, or any other person required to assist co-operate with IRp, do not assist or coo cP(iB)// 149/AHM/2024 In the matter of :

the IRp is at liberty to rnake appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order. The IRP is expected to take full charge of the corporate debtor's 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. (i") The IRP shall be under a duty to protect and preserve the va-lue of the property of the 'corporate debtor company' and manage the operations of the corporate debtor company as a going concern as a part of obligation imposed by section 20 of the Code. (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. ("i) we direct the financial creditor to pay IRp a sum of Rs.2,OO - (Rupees T\ro Lakh Only) ,OOO I in advance within a period of 7 days from the date of this order to meet the cost of cIRp arising out of \,/ -_r?// cP(rB)/ l4eiAHM/2024 in the matter of :

issuing public notice and inviting claims etc. till the CoC decides about his fees/expenses. The Registry is directed to communicate this order to the f,rnancial creditor, corporate debtor, and to the Interim Resolution professional, the concerned Registrar of companies and the Insolvency and Bankruptcy Botrrd of India after completion of necessary formalities, within seven working days and upload the sarne on the website immediately after pronouncement of the order. The Registrar of Companies shall update its website by updating the Master Data of the corporate Debtor in MCA portal specihc mention regarding admission of this Application and shar forward the compliance report to the Registrar, NCLT. The commencement of the Corporate Insolvency Resolution Process shall be effective from the date of this order. L9. In of the above directions, Cp(IBltl4glilIf,Mil2}24 is by admitted. A issu, if applied for,

-sd (TECHNTCALI cP(rB)/149/AHM/2024 In the matter of :