Central Bank of India Limited Vs Vibrant Content Private Limited (NCLT Mumbai)
NCLT Mumbai held that application under section 7 of the Insolvency and Bankruptcy Code for initiating Corporate Insolvency Resolution Process [CIRP] against Corporate Debtor [Vibrant Content Pvt. Ltd.] is admitted since debt and default stand established.
Facts- This Company Petition is filed on 06.08.2024 by Central Bank of India Limited (Financial Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) in case of Vibrant Content Private Limited (Corporate Debtor) in terms of the provisions of Section 7 of the Insolvency and Bankruptcy Code, 2016 read with rule 4 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 on account of commission of a default in repayment of outstanding principal debt of Rs. 19,60,48,155/- including the interest and penalty interest due to the Applicant Financial Creditor. The date of default is stated as 29.08.2018.
Conclusion- Held that the debt due to the Applicant financial creditor having been acknowledged in the financial statement for the year ended 31.3.2023 extends the limitation and the present petition having been filed in the year 2024 is well within period of 3 years from the date of such acknowledgement.
Held that the debt and default stand established and there is no reason to deny the admission of the Petition. In view of this, the Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor. Thus, the Petition filed by Central Bank of India Limited, u/s. 7 of the IBC read with rule 4(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against Vibrant Content Private Limited is admitted.
