Canara Bank Vs Karanja Terminal & Logistics Private Limited (NCLT Mumbai)
NCLT Mumbai held that the Karanja Terminal & Logistics Private Limited [Corporate Debtor] has committed a default in repaying the financial debt to the Financial Creditor for a sum well beyond rupees one crores. Thus, application u/s. 7 of IBC for initiation of CIRP admitted.
Facts- This is an application filed by the Applicant- Canara Bank (Financial Creditor/the Petitioner), on 27.09.2024 against the Respondent-Karanja Terminal & Logistics Private Limited (Corporate Debtor), under Section 7 of the Insolvency & Bankruptcy Code 2016 r/w Rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, seeking commencement of the Corporate Insolvency Resolution Process (‘CIRP’) of the Corporate Debtor, appointment of Interim Resolution Professional (‘IRP’) and declaration of moratorium u/s 14 of the Code.
Conclusion- Held that the Corporate Debtor has committed a default in repaying the financial debt to the Financial Creditor for a sum well beyond rupees one crores. Thus, the present petition satisfies the minimum threshold of default of INR 1 crore prescribed u/s 4 of the Code for initiating the CIRP of the Corporate Debtor. It is trite to say that the Adjudicating Authority need not ascertain the exact amount of default committed by the Corporate Debtor for the purpose of admitting the application u/s 7 of the Code, as the same is the duty of the IRP/RP while verifying and collating the claim of the Applicant during the course of the CIRP of the Corporate Debtor. We are further satisfied that the application filed under Section 7 of the Code is complete in all respects and based on the undertaking of the IRP, we believe that there are no disciplinary proceedings pending against the proposed Interim Resolution Professional. Hence, in light of the law laid down by the Hon’ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank, the present application is bound to be admitted under Section 7(5)(a) of the Code.
