Central Bank of India Vs Repute Foods Pvt. Ltd (NCLT Ahmedabad)
NCLT Ahmedabad admitted CIRP application under section 7 of the Insolvency and Bankruptcy Code by Central Bank of India [Financial Creditor] against M/s. Repute Foods Pvt. Ltd. [Corporate Debtor] as debt and default established.
Facts- The Present Application is filed on 28.08.2024 by the Applicant- Central Bank of India (Financial Creditor) against the Respondent- M/s. Repute Foods Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiation of Corporate Insolvency Resolution Process (CIRP), to appoint Interim Resolution Professional and declare the moratorium for having defaulted payment of its outstanding dues of Rs.20,46,31,392/- including interest. The date of default as stated to be 11.08.2023.
Conclusion- The Supreme Court in Innoventive Industries Ltd. v. ICICI Bank clarified that the Adjudicating Authority must admit a CIRP application if debt and default are established, without delving into extraneous matters. The Corporate Debtor’s MSME status and prior litigations are extraneous and do not dispute the debt or default. The Financial Creditor’s compliance with the SARFAESI Act and Reserve Bank of India guidelines further supports its application.
