Bikki Raveendra Babu, Member - (1.) Reliance Commercial Finance Ltd, styling itself as 'Financial Creditor' under Section 7 of the Insolvency and Bankruptcy Code, 2016 ["IB Code" for short] read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, ("IB Rules" for short) against the Respondent Company treating it as 'Corporate Debtor' for triggering Corporation Insolvency Resolution Process.
(2.) The Commercial Finance Division of Reliance Capital Limited was demerged into Reliance Commercial Finance Ltd/Applicant Company vide order dated 9.12.2016 passed by the Hon'ble High Court of Judicature at Bombay in a Scheme of Demerger.
(3.) Respondent/Prime Cars Private Limited is doing business in buying and selling of motorcycles and its parts and accessories. It is a Company registered under the Companies Act, 1956. The Authorised Share Capital of the Respondent Company is Rs. 4,50,00,000/- and the Paid-Up Share Capital is Rs. 4,06,00,520/-. The Registered Office of the Respondent Company is situated at Indore, Madhya Pradesh. Respondent Company approached Reliance Capital Limited to avail a Revolving Loan Facility for Inventory Funding up to Rs. 2,00,00,000/- for purchase of vehicles/inventory. Reliance Capital Limited sanctioned and disbursed loan of Rs. 50,00,000/- to Respondent Company on 26.8.2016. Reliance Capital Ltd., disbursed a loan of another Rs. 50,00,000/- to Respondent Company on 7.9.2016. The first loan was repayable on 10.10.2016 and the second loan was repayable on 22.10.2016. As on 22.10.2016, the amount repayable to Reliance Capital Limited was Rs. 97,02,848/- including interest in both the loan accounts together.;