Nitin Suresh Satghare Vs Pancard Clubs Limited (NCLAT Mumbai)
Held that initiation of CIRP under I&B code cannot be nullified by any order passed by SEBI nor can be a ground to reject an application.
Facts-
This Company Petition is filed under section 7 of the Insolvency and Bankruptcy Code, 2016 seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Pancard Clubs Limited.
The present Petition was filed before this Adjudicating Authority on the ground that the Respondent has defaulted in repayment of monies to the tune of Rs.1,55,12,880/- invested by the Petitioners.
The Financial Debt has arisen in respect of investments made by the Petitioners in a Collective Investment Scheme (“CIS”) operated by the Respondent under the guise of time share business.
SEBI by way of an Order dated 29.02.2016 directed the Respondent to refund monies to the tune of Rs.7035 Crore of the investors of its CIS within three months of passing of the said order and directed the CIS to be wound up. Thereafter, the Respondent herein preferred an appeal before the Hon’ble Securities Appellate Tribunal (SAT) and sought to challenge the Order dated 29.02.2016 of SEBI. SAT has upheld the Order dated 29.02.2016.
Conclusion-
On plain reading of the findings of the Hon’ble NCALT in Sobha Limited vs. Pancard Clubs Ltd. is crystal clear that an Order passed by SEBI is no bar to initiation of CIRP against the Corporate Debtor. Therefore, the contention of the Applicant i.e. SEBI in IA 1894 of 2019 that initiation of CIRP will be detrimental to recovery proceedings initiated vide order dated 29.02.2016 cannot be considered.
The application made by the Financial Creditors is complete in all respects as required by law. It clearly shows 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. Therefore, the debt and default stands 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.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
1. [This Company Petition is filed under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Mr. Nitin Suresh Satghare & 99 Ors. (“hereinafter referred to as Petitioners”), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Pancard Clubs Limited (“hereinafter referred to as Respondent”).
2. The Corporate Debtor is a Private Limited company incorporated on 24.01.1997 under Companies Act, 1956 with the Registrar of Companies, Maharashtra, Mumbai. Its registered office situated at 111113, Kaliandas Udyog Bhavan, Near Century Bazaar, Prabhadevi, Mumbai-400025. Therefore, this Bench has jurisdiction to deal with this Petition.
3. The present Petition was filed before this Adjudicating Authority on the ground that the Respondent has defaulted in repayment of monies to the tune of Rs.1,55,12,880/- (Rupees One Crore Fifty-Five Lakh Twelve Thousand Eight hundred and Eighty Only) invested by the Petitioners.
4. The particulars of debt of the Petitioners is detailed as under:
