Invent Assets Securitisation And Reconstruction Private Limited Vs C M Smith And Sons Limited (NCLT Ahmedabad)
NCLT Ahmedabad held that application under section 7 of the Insolvency and Bankruptcy Code, 2016 [IBC] against Corporate Debtor [M/s. C M Smith and Sons Limited] for initiation of Corporate Insolvency Resolution Process [CIRP] admitted as debt as well as default is established by way of ledger confirmation.
Facts- This Application is filed under section 7 of the Insolvency and Bankruptcy Code, 2016 by the Financial Creditor/ Petitioner for initiation of Corporate insolvency Resolution Process (CIRP) against the Corporate Debtor i.e. M/s. C M Smith and Sons Limited for total amount in default is Rs. 97,54,43,527.49/-as on 31.03.2024. The date of default is 10.01.2019.
Conclusion- Held that the Petitioner has also filed the Audited balance sheet for the F.Y. 2020-21, wherein, the Corporate Debtor has admitted and acknowledged its liability. The Corporate Debtor further acknowledged the liability by ledger confirmation lastly on 01.04.2022. An application was initially filed on 11.04.2023 bearing CP(IB) No. 135 of 2023 before the Court-I, Ahmedabad Bench which was dismissed for want of NeSL Certificate. The Petitioner further filed this petition on 16.05.2024, even after the date of filing of this application taking into consideration it is well within the limitation of acknowledgement of debt by the Corporate Debtor. Vide order dated 27.10.2023, an earlier petition was dismissed on the ground that NeSL record of default i.e. Form-D was not filed therefore, alongwith this application the same has been attached as Annexure -“X”. It shows status “Deemed to be Authenticated” confirming the date of default as 10.01.2019. Thus, the earlier defect of the application has been cured. The Petitioner also produced Registered Deed of Assignment, Certificate of Registration for Modification of Charge as Annexure- “ZA”. Hence, the debt as well as default is there by way of ledger confirmation. The debt was acknowledged and therefore the application is liable to be in allowed. Thus, the Respondent/ Corporate Debtor- M/ s. C M Smith and Sons Limited is admitted in the Corporate Insolvency Resolution Process under Section 7 of the IBC, 2016.
