Punjab National Bank Vs Damara Gold Private Limited (NCLT Mumbai)
NCLT Mumbai held that the Corporate Debtor [Damara Gold Private Limited] has committed a default in repaying the financial debt to the Financial Creditor [M/s. Punjab National Bank]. Accordingly, application u/s. 7 of IBC for initiation of CIRP admitted.
Facts- This is an Application filed by the M/s. Punjab National Bank (Financial Creditor) against Damara Gold Private Limited. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate the Corporate Insolvency Resolution Process (‘CIRP’) against the Corporate Debtor, to appoint IRP and to initiate moratorium.
Conclusion- Held that the Corporate Debtor has committed a default in repaying the financial debt to the Financial Creditor for a sum well beyond Rupees One Crores. Thus, the present petition satisfies the minimum threshold of default of INR 1 crore prescribed u/s 4 of the Code for initiating the CIRP of the Corporate Debtor. It is trite to say that the Ad-judicating Authority need not ascertain the exact amount of default committed by the Corporate Debtor for the purpose of admitting the application u/s 7 of the Code, as the same is the duty of the IRP/RP while verifying and collating the claim of the Applicant during the course of the CIRP of the Corporate Debtor. We are further satisfied that the application filed under Section 7 of the Code is complete in all respects and based on the undertaking of the IRP, we believe that there are no disciplinary proceedings pending against the proposed Interim Resolution Professional. Hence, in light of the law laid down by the Hon’ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank, the present application is bound to be admitted under Section 7(5)(a) of the Code.
