Bank of India Vs GF Toll Road Private Limited (NCLT Mumbai)
NCLAT Mumbai held that initiation of CIRP application under section 7 of the Insolvency and Bankruptcy Code, 2016 admitted as the Corporate Debtor is in default of a debt due and payable and the default is in excess of minimum amount stipulated under section 4(1) of the IBC.
Facts- This Company Petition is filed under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Bank of India (Financial Creditor/Applicant), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against GF Toll Road Private Limited (Corporate Debtor/Respondent).
Conclusion- In view of the ratio of decision in M Suresh Kumar Reddy, this Tribunal is bound to admit the Petition under section 7 if there exists an undisputed debt and there is a default in payment thereof provided the Petition is within limitation period and the default amount exceeds Rs. 1.00 crore.
Held that it is clear that the Corporate Debtor is in default of a debt due and payable and the default is in excess of minimum amount stipulated under section 4(1) of the IBC. The application made by the Financial Creditor is complete in all respects as required by law. Therefore, the debt and default stand established and there is no reason to deny the admission of the Petition. In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor.
