National Asset Reconstruction Company Limited Vs Era Infrastructure (India) Ltd (NCLT Delhi)
NCLT Delhi held that application under section 7 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process [CIRP] against Corporate Debtor [Era Infrastructure (India) Ltd.] admitted since financial debt and default thereon duly proved.
Facts- The present Company Application is filed by NATIONAL ASSET RECONSTRUCTION COMPANY LIMITED (Applicant) through its Power of Attorney Holder, India Debt Resolution Company Limited u/s. 7 of the Insolvency and Bankruptcy Code, 2016 read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 with the following prayer with a prayer to trigger Corporate Insolvency Resolution Process in respect of Respondent Company Era Infrastructure (India) Ltd. (Corporate Debtor) for default in repayment of financial debt of Rs. 385,38,41,870/-.
Conclusion- Held that the application, filed under Section 7 of the IBC by the Financial Creditor, is duly supported by all requisite documents. With no statutory bar to its admission, and in view of the undisputed financial debt, established default, and procedural compliance, the initiation of CIRP is warranted. With regard to the existence of debt and default, on a perusal of Form – I and the documents annexed with the application, we are satisfied that the applicant clearly comes within the definition of Financial Creditor and the loan was disbursed to Corporate Debtor and there exists a debt and its default. Thus, it is clear that when a default takes place i.e., the debt becomes due and is not paid, the Insolvency Resolution Process shall begin against the corporate debtor. Therefore, on the basis of discussion in the aforesaid paragraphs, we are satisfied that the present application is complete in all respects. The Applicant /financial creditor is entitled to move the application against the corporate debtor in view of outstanding financial debt in default above the pecuniary threshold limit as provided under Section 4 of the Code, 2016. As a sequel to the above discussion and in terms of Section 7(5)(a) of the Code, the present company application stands admitted and the CIRP is hereby initiated against ERA INFRASTRUCTURE (INDIA) LTD.
