Kotak Mahindra Bank Limited Vs Inditrade Business Consultants Limited (NCLT Kochi)
NCLT Kochi held that application under section 7 for initiation of Corporate Insolvency Resolution Process [CIRP] against M/s. Inditrade Business Consultants Limited is admitted since financial debt and occurrence of default established.
Facts- The present petition has been filed by the Kotak Mahindra Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as ‘the Code’), read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating the Corporate Insolvency Resolution Process, declaring moratorium and for appointment of Interim Resolution Professional, against the Corporate Debtor viz. M/s Inditrade Business Consultants Limited. The total amount claimed to be in default as per Part-IV of the petition is Rs. 6,67,07,194.21/- as on 02.06.2025.
Conclusion- Held that at the stage of admission under Section 7 of the Code, the Adjudicating Authority is required only to determine the existence of a financial debt and the occurrence of default. In the present case, both these conditions stand conclusively established, and the Corporate Debtor’s own communications acknowledge the outstanding liability. The amount in default exceeds the threshold prescribed under Section 4 of the Code, and the Petition is otherwise complete in all respects. Accordingly, this Adjudicating Authority finds sufficient ground to admit the Petition and initiate the Corporate Insolvency Resolution Process against the Corporate Debtor in accordance with law.
