- (1.) The Petition under consideration was filed on 11th July, 2017 by invoking the provisions of section 10 of the Insolvency & Bankruptcy Code 2016 (hereinafter "The Code") by the Corporate Debtor as a Petitioner. The Petitioner has filed this Petition as a Corporate Debtor seeking initiation of Corporate Insolvency Resolution Process against itself.
(2.) Facts in brief: i) Facts stated in the Petition are that the Petitioner/Corporate Debtor is incorporated on 19th July 2007 and engaged in the business of construction and management of construction, execution of EPC Projects etc. The admitted factual position is that the Petitioner had availed credit facilities from various Banks. There is a long list of Financial Creditors annexed along with the Petition. Names of the Banks, and the details of outstanding debt for which default of non-payment is not disputed is duly annexed with the Petition. The total amount of the Financial Creditors is stated to be Rs. 586,72,51,905 only. The main Financial Creditors are Axis Bank, Syndicate Bank, State Bank of India, Punjab National Bank, Canara Bank, Bank of India, Kotak Mahindra Bank, ICICI Bank, etc. ii) The Debtor Company is managed by the following four Directors:- Mr. Sabit Zhanassov, Mr. Abylai Karibayev, Mr. Rakesh Tiwari and Mr. Shiv Mangal Singh. iii) A Board Resolution was passed on 27th June 2017 by the Debtor Company and resolved that an Application is to be moved to initiate the Corporate Insolvency Resolution Process. iv) In addition to the Financial Creditors as listed hereinabove, there is a long list of "Operational Creditors" annexed with the Petition running in several pages. The total amount of the Operational Creditor stated to be 126,34,26,653. v) The Corporate Debtor had defaulted in repayment of the borrowings, therefore, the Financial Creditors declared the outstanding loan as "Non-Performing Asset" (NPA) . The Banks have issued several letters intimating the default and thereafter declared the defaulter as NPA. A long list of evidence and notices demanding the outstanding debt are on record. vi) In addition to the Financial Debt the Debtor had availed services from various parties. The Debtor had also purchased goods from various Suppliers. The Debtor had also defaulted in payment of salaries to its employees. The aggregate amount of the outstanding debt of the employees was 36,53,987. 2.1 The Petitioner/Debtor was awarded several projects by public sector Companies and State Government Departments. The Projects were not completed within the time agreed upon. Because of the delay, the financial position of the Debtor Company was deeply disturbed. On the other hand, the Debtor's position was adversely impacted on account of non-receipt of payment from its clients. Some of the clients have invoked the Bank Guarantee in an unjustified manner, as alleged by the Petitioner. 2.2 As a result, finally the Board of Directors of the Corporate Debtor have held a meeting on 27th June, 2017 authorising to file application for initiation of Corporate Insolvency Resolution Process in terms of Section 10 of the Insolvency & Bankruptcy Code.
(3.) From the side of the Petitioner Learned Senior Counsel Mr. Freddie De'vitre appeared and explained that the Petitioner had complied with the requirements of section 10, hence the Petition deserves to be "Admitted". He has explained that the Petitioner had no option but to take help of the newly enacted Code so that the Company can be revived by financial restructuring. According to him, the admitted factual position is that the Debtor Company had committed the "default" of non-payment of the outstanding debt as defined under section 3(12) of the Code. It is intimated that the name of the Resolution Professional is proposed, hence the Debtor Company is hopeful to get some solution of financial problem.;