karur Vysya Bank Ltd Vs Ran India Steels Pvt Ltd (NCLT Chennai)
NCLT Chennai held that application u/s. 7 of IBC against Corporate Debtor [Ran India Steels Private Limited] for initiation of CIRP admitted as financial debt is proved by the Financial Creditor and the ‘default’ having been committed by the Corporate Debtor.
Facts- This petition u/s. 7 of the Insolvency and Bankruptcy, 2016 read with Rule 4 of the Insolvency and Bankruptcy Board of India (Petition to Adjudicating Authority) has been filed by Karur Vysya Bank (Petitioner/Financial Creditor) against Ran India Steels Private Limited (Respondent/Corporate Debtor) to initiate Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor.
Conclusion- The Hon’ble Supreme Court in the case Innoventive Industries Limited -Vs- ICICI Bank & Anr., (2018) 1 SCC 407 has held that Tribunal is required to see whether there is a ‘debt’ which is due and payable under the law and whether the default is more than Rupees One Lakh (now Rupees One Crore). The moment the default amount exceeds Rupees One Crore; this Tribunal is required to initiate Corporate Insolvency Resolution Process as against the Corporate Debtor.
Held that in view of the ‘financial debt’ which is proved by the Financial Creditor and the ‘default’ having been committed by the Corporate Debtor, this Tribunal admits the present petition and initiates the Corporate Insolvency Resolution Process in relation to the Corporate Debtor viz., Ran India Steels Private Limited.
