In the matter of Y. Pani and Company Pvt. Ltd.
- CitationCP (IB) No. 8/CTB/2021
Ratio decidendi
The rule this decision rests on
The Tribunal admitted a corporate debtor's own Section 10 application for initiation of CIRP, and in doing so applied the statutory test that admission follows where the application is complete and the requisite default is shown; the admission was ordered on that basis together with the consequences the Code attaches to admission. Since the order rests on those statutory requirements and their operation, its reasoning is recorded below. A Section 10 application by a corporate debtor is to be admitted where it is complete and the corporate debtor is in default, the default being established by the debt being due and unpaid; upon admission the Adjudicating Authority is bound to order a moratorium under Section 14, which prohibits the institution or continuation of suits and proceedings against the corporate debtor, the transfer or alienation of its assets, enforcement of security interests, and the recovery of property occupied by the corporate debtor, and which takes effect from the date of admission until the completion of the Corporate Insolvency Resolution Process. Upon admission the Adjudicating Authority is to appoint an Interim Resolution Professional, who must make the public announcement under Section 15 and conduct the Corporate Insolvency Resolution Process within the time-bound framework prescribed by the Code and the Regulations.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
In the Matter of. An application under Section 10 of the Insolvency and Bankruptcy Code, 2016 read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016
And In the Matter of. Y. Pani and Company Pvt. Ltd., a company incorporated under the Companies Act,1956 having its Registered Office situated at: 4.-L, Banaphool House, Budha Nagar, Bhubaneswar - 751006, Odisha. . Corporate Applicant/ Corporate Debtor. . Coram: : Shri Rajasekhar V.K. Member (Judicial) : Shri Satya Ranjan Prasad Member (Technical)
Appearances (through video conferencing) For the applicant: Mr. Siva Sankar Chaini, Advocate.
Order reserved onz 26.07.2021 Order pronounced on: 13.09,2021 ORDER
Per: Rajasekhar V.K., Member (ludicial) 1. This application has been filed by Y. Pani and Company Pvt. Ltd. under Section 10 of Insolvency and Bankruptcy Code, 2016 to initiate Corporate Insolvency Resolution Process (CIRP) against itself as the Corporate Person
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IN THE NATIONAL COMPANY LAW TRIBUNAI, CUTTACK BENC}I CP (IB) No.8/CB/2021 Inre: CIHP of Y, PANI & COMPANY PVT, LTD.
is unable to pay the debt of <7 ,97 ,73,547 / - (Rupees seven crore ninety-seven lakh seventy-three thousand five hundred and forty-seven only). 2, The Registered Office ofthe Corporate Debtor is situated at A-1, Banaphool House, Budha Nagar, Bhubaneswar 75L 006, in the State of Odisha, within the jurisdiction of this Adjudicating Authority. 3. The applicant was incorporated on 15.01 .L990 as a private limited company with a main objective of lodging, boarding and restaurant business. The applicantsubmits ttrat it has requisite infrastructure to run the business. The brief facts arc that Hotel "Raaz" which is situated at viTlage Angul Town, Tahsil - Angul, Khata No. - 335, Plot No. - 779/L864, area - A0.440 decimal. This asset was taken possession of by the Orissa State Financial Corporation, Cuttack on 28.06.2019. The original owner of the land is Radha Prasad and the owner was running a hotel business in the name of Hotel Suni Resorts Pvt. Ltd and was seized by the Orissa State Financial Corporation, Cuttack. These assets were handed over to the corporate applicant on 15.01.1990 with a copy of leave and license agreement on 31.03.1990. 4, On 31.01.L995, the Orissa State Financial Corporation informed the applicant to sell the unit to the petitioner for t36,00 ,000/ - which inclusive of total loan amount <90,164.27 /- with interest @ L2.5o/o per annum for purchase of hotel and for development of hotel and auction sale was made on 13.01.1995. 5. The Orissa State Financial Corporation handed over the possession to the co(porate applicant and the entfue loan was rescheduled by the Orissa State Financial Corporation but the shoo possession was not been given. On 30.L2.2019, the Orissa State Financial Corporation for One Time Settlement (OTS) sent letter for depositin 976,39 ,4L ,000 / - and after that the applicant had taken loan to the tune of {1,06,57,000/- from Guru Empires for repayment of loan and taking time from the Orissa State Financial
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IN TIIE NATIONAL COMPANY LAW TRIBUNAL CUT'TACK BENCH CP (IB)No.8/CB/2021 In re: CIRP of Y. PANI & COMPANY PVT, LT'D.
Corporationto affange the money. However, the applicantwas not able to affange the money to repay the loan. 6. The applicant submits that it has an excellent ffack record and infrastructure for the smooth functioning of the business. Therefore, the applicant is it confident that can be revived and rehabilitated under the aegis and supervision of the regime in place under the Code. 7. The Board of Directors'meeting was held on 02.0L.202L and the Extra Ordinary General Body Meeting of the Shareholders was held on 25.01.202L In both the Meeting, unanimously passed resolution to approachthis Adjudicating Authority for initiation of Corporate Insolvency Resolution Process. The applicant has enclosed the copies of Audited Financial Statements for the two Financial Year as on 3L.03.20L9 and 31.03.2020 along with the application. 8. For appointment as Insolvency Resolution Professional, the Corporate Applicant has suggested the name of one Mr. Umesh Chandra Sahoo resident of Plot No.4, Snow Drop Apartment, Jharpada, Cuttack Road, Bhubaneswar, Khurda 7 51 006 having Registration No. IBBI/IPA -002 / IP - Email N00621,/2018-L9/ 11855 and in&@nayadarshau.qom. This application is ADMITTED by following order.
ORDER (1) This application filed by the Corporate Applicant under Section 10 of the Insolvency & Bankruptcy Code, 2016 is hereby ADMITTED for initiating the Corporate Insolvency Resolution Process against Y. Pani and Company Pvt. Ltd. (Corporate Applicant/Corporate Debtor). Moratorium order is passed for a public announcement as stated in Section 13 of the IBC,2016.
ed
IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACI( BENCH CP (IB) No.8/CB/2021 In re: CIKP of Y. PANI & COMPANY PVT. LTD.
(ir) The moratorium is declared for the purposes referred to in Section L4 of the Insolvency & Bankruptry Code, 2016. The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process andcalTfor the submission of claims under Section 15. The public announcement refened to in clause O) of sub-Section (1) of Insolvency & Bankruptcy Code, 2016 shallbe made immediately. (iii) Moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016 prohibits the following: - (1) 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 or other Authority; (2) Transfetring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or alay legal right or beneficial interest therein; (3) Any action to foreclose, (ecover or enforce any security interest createdby the Corporate Debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest fuct,2002; (a) The recovery of any property by an owner or lessor where such property is occupied by or in possession of the Corporate Debtor. (1v) The supply of essential goods or seryices to the Corporate Debtor as may be specified shall not be terminated or suspended or interrupted during the moratorium period. (v) The provisions of sub-Section (1) shall not apply to such transactions as may be notified by the Central Govemment in consultation with any financial sector regulator.
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IN THE NATIONAL COMPANY LAW TRIBUNAL CUT"TACK BENCH CP (IB) No.8/CB/2021 In re: CIfuP of Y, PANI & COMPANY PVT, LTD, (vi) The order of moratorium shall take effect the date of admission till the completion of the Corporate Insolvency Resolution Process. (vii) At any time during the Corporate Insolvency Resolution Process period, if the Adjudicating Authority approves the Resolution Plan under sub-section (1) of sec.31 or passes an order for liquidation of Corporate Debtor under section 33, the moratorium sha1l cease to have effect from the date of such approval or liquidation order, as the case may be. (viii) Necessary public announcement as per Section 15 of the IBC, 2016 may be made by the Resolution Professional upon receipt of the copy of this order. (ix) Mr. Umesh Chandra Sahoo registered with the ICSI Insolvency Professionals Agency having having Regisration No. IBBI/IPA- 002/IP-N0062L/2018-|9/11855 resident of Plot No. - 4, Snow Drop Apartment, Jharpada, Cuttack Road, Bhubaneswar, Khurda - 7 51 006 having E-mail Id - info@nayadarshan.com is appointed as Interim Resolution Professional for ascertaining the particulars of creditors and conventngameeting of the Committee of Creditors for evolving a Resolution Plan. (x) The Resolution Professional shall conduct CIRP in time bound manner as per Regplation 40A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulation, 2016. (xi) The Interim Resolution Professional should convene a meeting of the Committee of Creditors and submit the resolution passed by the Committee of Creditors.
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IN THE NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCI.I CP (IB) No.8/CB/2021 Inre: CIW of Y. PANI & COMPANY PVT. LTD.
(xii) IA No. 23lCB /2021connected with CP (IB) No. 8/CB/2021 and IA No. 61ICB/202L connected with CP (IB) No. 8/CB/2021 filed for urgent hearing are CLOSED. (xiii) Registry is hereby directed to communicate the order to the Corporate Applicant/Corporute Debtor and to the Interim Resolution Professional by Speed Post as wel1as through E-mail. (xiv) Interim Resolution Professional to file l't p(ogress report on 10.1.1.2021. (xv) Let the certified copy of the order be issued upon compliance with requisite formalities.
9Y SA S"ryhRanjan Prasad Rajaselihar V.K. Member (Technical) Member (Judicial)
Signed this, the 13'h day of September,202l
Santosh-P. S.
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