V. Nallasenapathy, Member - (1.) This Company Petition is filed by M/s. Pine Forest Products & Investment Ltd., 811-812, Tulsiani Chambers, Nariman Point, Mumbai - 400 021 against the Corporate Debtor, M/s. Zenith Computers Ltd., Plot No.: EL 117,1st Floor, TTC Area, MIDC, Mahape, Navi Mumbai - 400 710, alleging that the Corporate Debtor failed to pay the financial debt of Rs. 1,25,00,000/- with interest @ 24% p.a. from 13.10.16 to 30.04.2017 amounting to Rs. 16,35,660/- and hence this Petition is filed under Section 7 of Insolvency and Bankruptcy Code, 2016 (hereinafter referred as "the Code") for initiation of corporate insolvency resolution process.
(2.) The Petitioner submits that its Board of Directors by a Resolution dated 14.02.2017 authorized one of its Directors, Mr. Kamal Dujod wala, to initiate proceeding before NCLT Mumbai Bench against the Corporate Debtor.
(3.) The Financial Creditor discloses that the Corporate Debtor had approached it for a short term loan of Rs. 2,00,00,000/- repayable within 30 days with 24% interest per annum. Accordingly, the Financial Creditor sanctioned a sum of Rs. 1,25,00,000/- as short term loan and issued cheque No. 786610 dtd. 13.10.2016 drawn on Jammu & Kashmir Bank, Fort Branch, for Rs. 1,25,00,000/-. The said loan is an unsecured short term loan for a period of 30 days repayable with interest of 24% per annum. The Corporate Debtor vide letter dated 14.10.2016 acknowledged the receipt of the cheque issued by the Financial Creditor. The Financial Creditor vide letter dated 17.11.2016 called upon the Corporate Debtor to repay the said loan of Rs. 1,25,00,000/- along with interest @ 24% per annum from 13.10.2016 till the date of payment, within 7 days from the receipt of the letter, failing which legal proceedings will be taken. In reply to the said letter, the Corporate Debtor on 23.11.2016 requested the Financial Creditor to extend the time for repayment by one month and stated that the principal and interest will be paid on or before 12.12.2016. Since there was no repayment, the Financial Creditor sent another letter on 15.12.2016 seeking repayment of the loan, for which the Corporate Debtor on 19.12.2016 responded seeking another 6 months for start paying the loan in mutually agreed instalments. Then the Financial Creditor on 15.03.2017 issued notice under the Code with a request to repay the loan. The above facts clearly shows that there is a financial debt payable by the Corporate Debtor and the same is on default from 17.11.2016.;