IDBI Bank Limited Vs Fortune Spirit Limited (NCLT Cuttack)
NCLT Cuttack held that application for initiation of Corporate Insolvency Resolution Process [CIRP] under section 7 of the Insolvency and Bankruptcy Code [IBC] admitted against Corporate Debtor [Fortune Spirit Limited] as debt and default in payment of debt duly proved.
Facts- The present Application has been filed on 07.03.2024 by IDBI Bank Limited through its authorized representative Purna Chandra Majhi (Applicant/Financial Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Fortune Spirit Limited (the Respondent/Corporate Debtor) by invoking the provisions of Section 7 of the Insolvency and Bankruptcy Code,2016 read with Rule 4 of Insolvency 86 Bankruptcy (Application to adjudicating Authority) Rules, 2016 for a Financial Debt of 18,50,93,177.22/-.
Conclusion- Held that as the default has occurred on 31.03.2021 and the subsequent acknowledgement made by the Corporate Debtor through OTS extends the limitation period. It is seen that the Applicant had filed this application on 07.03.2024 which is well within the period of limitation. Hence, the period of limitation stands satisfied. It is thus made amply clear that all the conditions to admit a Section 7 application are satisfied in the present case for the fact that there exists a ‘debt’ and ‘default’ in payment of debt by Corporate Debtor, we have not expressed any opinion on the other arguments raised by both the Parties. Thus, we hereby ADMIT the petition.
