Bikki Raveendra Babu, Member - (1.) This Application is preferred by M/s. Reliance Commercial Finance Ltd., styled itself as 'Financial Creditor' with a request to initiate Insolvency Resolution Process 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, ["Adjudication Rules" for short] in Form-1 against M/s. Anil Nutrients Ltd., treating as 'Corporate Debtor' (Principal Borrower).
(2.) M/S. Reliance Commercial Finance Ltd., styled itself as 'Financial Creditor' gave Power of Attorney to Shri Hitesh Joshi, as its lawful Attorney vide General Power of Attorney dated 1st April, 2017.
(3.) The case of M/s. Reliance Commercial Finance Limited, in brief, is as follows; 3.1 M/s. Anil Nutrients Limited had approached and applied to M/s. Reliance Capital Limited to avail Term Loan Facility for Working Capital and entered into a Loan Agreement dated 31.12.2014 with M/s. Reliance Capital Ltd. M/s. Reliance Capital Ltd., disbursed Rs. 10,00,00,000/- to M/s. Anil Nutrients Ltd. (Principal Borrower). M/s. Anil Nutrients Ltd. executed various documents in favour of M/s. Reliance Capital Limited, which include Working Capital Agreement, Deed of Hypothecation, Demand Promissory Note, etc. 3.2 M/s. Anil Limited, stood as a Corporate Guarantor to the Facility Agreement or the Working Capital Agreement dated 31.12.2014 made between M/s. Reliance Capital Ltd., and M/s. Anil Nutrients Ltd. and thereby Anil Ltd. became a Guarantor to the loan borrowed by M/s. Anil Nutrients Ltd. 3.3 M/s. Reliance Capital Limited, was demerged into M/s. Reliance Commercial Finance Ltd., as per the order of the Hon'ble High Court of Bombay. As per the said Demerger Scheme, all the debts of M/s. Reliance Capital Ltd., were transferred to the Applicant herein, i.e., M/s. Reliance Commercial Finance Ltd., and that is how the present Applicant has become Financial Creditor of M/s. Anil Nutrients Ltd. Respondent herein. 3.4 M/s. Anil Nutrients Ltd., did not care to make repayment of the loan amount as per the agreed terms and conditions inspite of repeated requests and reminders made by M/s. Reliance Capital Ltd. and as well as by the present Applicant. M/s. Anil Nutrients Ltd. failed and neglected to pay the outstanding amount. Applicant got issued a legal notice dated 28.9.2016 to M/s. Anil Nutrients Ltd., and called upon the Respondent to repay the loan amount as 'Principal Borrower'. 3.5 M/s. Reliance Capital Limited maintained the account of M/s. Anil Nutrients Ltd. As per the said account, M/s. Anil Nutrients Ltd. is due to pay Rs. 8,87,94,014/- as on 12.10.2016. 3.6 Applicant issued statutory notice dated 31.12.2016 to M/s. Anil Nutrients Ltd., calling upon it to pay the outstanding amount of Rs. 8,87,94,014/- within 21 days. Respondent received the said notice but did not choose to pay the amount. Applicant came to know that Respondent Company owes huge amount of monies not only to the Applicant but to various Financial and Operational Creditors. Applicant states that the Respondent Company has been making huge losses and is not in position to clear its debts and liabilities. The Registered Office of the Respondent Company is situated at Ahmedabad.;