R.P. Nagrath, Member - (1.) M/S Horseshoe Entertainment & Hospitality Pvt. Ltd., a Corporate Debtor has filed application in Form No.6 as prescribed by sub rule (1) of Rule 7 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity the 'Rules) for initiating insolvency corporate resolution process under Sections 10, 13 and 14 of the Insolvency & Bankruptcy Code, 2016 (for short to be referred here-in-after as the 'Code'). The 'Corporate Debtor1 is included in the definition of the term "Corporate Applicant', as defined in sub-section (5) of Section 5 of the Code and it would be referred as the petitioner here-in-after.
(2.) The petitioner was incorporated on 21.01.2008 having registered office at Gurgaon (now Gurugram) and, therefore, the matter falls within the territorial jurisdiction of this Tribunal. The petitioner has two Directors namely; Narendra Singh Bisht and Raj Pal Singh Bisht. There are four sharehoEders/promoters of the company namely; Amar Agarwal, Uma Agarwal, The Comedy Store Limited and Earthwise Hospitality and Entertainment Holdings Pvt. Ltd. (for brevity 'Earthwise'). The Comedy Store Limited UK (for brevity to be referred as the objector/intervener) is shown as the Holding Company having 59.42% of the shareholding and the Earthwise one of the financial creditors as Associate Company having 36.81 % shares as per documents at pages 94 and 97 of the paper book. The remaining shareholders, Amar Aggarwal holds 2.46% and Uma Aggarwal 1.31% of the shares in this company. The authorised share capital of the petitioner company is f11.00,00,000/- divided into 1.10,00,000 equity shares of Rs. 10/- each and its paid-up capital is Rs. 10,99,59,240/- divided into 1 ,09,95,924/- equity shares of Rs. 10/- each.
(3.) Annexure 'A' is the extract of the meeting of the Board of Directors of the petitioner company held on 05,05.2017 resolving to file an application under Section 10 of the Code to carry out the resolution process and authorising Mr. Saurabh Gambhir as authorised signatory to execute, sign, affirm and file the petition, appiication etc. on behalf of the company under the Code with further authority to engage advocates, pleaders, solicitors etc. It was noticed by the Board that the company is facing problem due to its negative net worth and has got into trouble and found itself unable to repay its debts and liabilities, which are to the tune of Rs. 11,97,11,512/- as per the financial statement for the year ending 31.03 2017 against the total assets of Rs. 2,92,87,562. it was also noted that there are pending claims and arbitration matters causing increase in the company's liabilities day by day. The application in Form 6 is supported by the affidavit of the aforesaid Saurabh Gambhir.;