Bikki Raveendra Babu, Member - (1.) Mr. Biren Parikh styling himself as financial creditor, filed this petition under section 7 of The Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "the Code") read with Rule 4 of The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as "the Rules") requesting this Authority to commence Corporate Insolvency Resolution Process in respect of M/s. Shree Vinayak Foods & Fabrics Pvt. Ltd. styling it as corporate debtor.
(2.) Shree Vinayak Foods & Fabrics Private Limited (hereinafter referred to as Corporate Debtor) is a company incorporated under the Companies Act, 1956 having its registered office in Ahmedabad. The Corporate debtor is engaged in the business of textile and food industries. In the financial year 2012-13, corporate debtor approached the petitioner for a corporate loan. Petitioner gave a loan of Rs. 1.45 crores to the corporate debtor of which details are as follows: (a) Rs. 50.00 lacs vide cheque dated 11.03.2013 bearing No. 000437 drawn in favour of Shree Vinayak Foods & Fabrics P. Ltd. on Bank of Baroda, Navrangpura Branch, Ahmedabad that was encashed on 12.03.2013. A (b) Rs. 50.85 lacs vide cheque dated 28.03.2013 bearing No. 000451 drawn in favour of Shree Vinayak Foods & Fabrics P. Ltd. on Bank of Baroda, Navrangpura Branch, i Ahmedabad that was encashed on 30.03.2013. (c) Rs. 24.15 lacs vide cheque dated 05.04.2013 bearing No. 000453 drawn in favour of Shree Vinayak Foods & Fabrics P. Ltd. on Bank of Baroda, Navrangpura Branch, Ahmedabad that was encashed on 08.04.2013. (d) Rs. 10.00 lacs vide cheque dated 26.11.2013 bearing No. 000555 drawn in favour of Shree Vinayak Foods & Fabrics P. Ltd. on Bank of Baroda, Navrangpura Branch, Ahmedabad that was encashed on 26.11.2013. (e) Rs. 10.00 lacs vide cheque dated 28.11.2013 bearing No. 000556 drawn in favour of Shree Vinayak Foods & Fabrics P. Ltd. on Bank of Baroda, Navrangpura Branch, Ahmedabad that was encashed on 28.11.2013.
(3.) Thereafter, petitioner demanded corporate debtor to repay the principal amount with interest. Corporate debtor assured to repay but never chose to repay. It came to the notice of the petitioner that corporate debtor has not filed balance sheet or I I any annual returns before the Registrar of Companies since the year 2012-13. Corporate debtor is under scrutiny of Income-tax Department. Petitioner addressed a letter dated 21.03.2016 to the Directors of the corporate debtor. Corporate debtor did not repay the amount with interest. Petitioner issued demand notice on 07.05.2016. Corporate debtor gave reply dated 29.05.2016 asking the petitioner not to proceed with winding up petition. Thereafter, petitioner addressed another notice dated 15.0.2016 demanding the respondent outstanding amount of Rs. 1.45 crores with 18% interest within 15 days. On 27.06.2016 respondent gave detailed reply denying the liability.;