Ina Malhotra, Member - (1.) This petition has been filed by the corporate debtor invoking the provision of section 10 of the Insolvency and Bankruptcy Code ('the Code'). Unable to liquidate its huge outstanding liabilities and being in clear default towards their financial creditors, more specifically Canara Bank and Standard Chartered Bank, they pray for initiation of insolvency resolution process. The said petition has been filed in the required format giving details of the corporate debtor and its creditors. As required, they have furnished details of the debt, which is to the tune of Rs. 32 crore approximately. In addition, they have given the details of the securities held by the creditors. The petition is duly annexed with the audited and provisional balance sheets and other financial statements of the corporate debtor. Learned counsel for the petitioner/corporate debtor has submitted that since the corporate debtor is unable to liquidate its debts and is in huge default towards its financial creditors, it would be in the fitness of things to initiate resolution process to pay off its debtors and salvage and liquidate the assets of the corporate debtor before they fall dissipate.
(2.) Learned counsel for the petitioner has pointed out that the corporate debtor does not suffer from any disability under section 11 of the Code for invoking the resolution process and has proposed the name of Mr. Martin Sunder Kumar Golla, Regn. No. IBBI/IPA-002/IP-N00095/2017-18/10238, as the interim resolution professional. His consent and certificate of eligibility is on record.
(3.) Though the facts of the case fulfill the requirement for initiating a resolution process by a corporate debtor to salvage whatever can be secured and the liability of the creditors liquidated at the earliest as also to ensure that its assets do not fall into disarray or dissipate, what is noted is that to avail the loan/credit facilities from the Banks, the corporate debtor has offered not only its immovable properties as securities, but also the personal guarantees of its directors and others, mortgaging several immovable properties in favour of the Banks.;