Page 37 - IBC Orders us 7-CA Mukesh Mohan

Order Passed Under Sec 7
Hon’ble NCLT Principal Bench

10. We have heard learned Counsel for the parties at a considerable length and are of the view that

the corporate insolvency resolution process deserves to be initiated against the 'Corporate Debtor' in the
face of clear admission in its reply dated 08.05.2017 (Annexure-X). The Applicant on its part has
complied with all the necessary requirements postulated by Section 7 of the Code. It has disclosed

particulars of each 'Financial Creditor', particulars of 'Corporate Debtor', particulars of proposed Interim
Resolution Professional and financial debt alongwith other details. The record in the form of statement of

account, certificate of registration of charge alongwith Form-8, a copy of offer letter, a copy of the Board
Resolution dated 13.10.2011, a copy of the Term Loan Agreement dated 13.10.2011 for a sum of Rs. 500
Million, Deed of Hypothecation dated 13.10.2011, Demand Promissory Note dated 13.10.2011 for a sum

of Rs. 500 Million with interest, a letter of continuity dated 13.10.2011, corporate guarantee of M/s.
Educomp Solutions Ltd. dt. 13.10.2011, a copy of offer letter dated 18.7.2013, a copy of the Board
Resolution dated 18.07.2013, a copy of the term loan dated 18.07.2013, a Deed of Hypothecation dated

18.07.2013, a copy of Demand Promissory Note dated 18.07.2013 for a sum of Rs. 175,000,000/- with
interest thereon, a copy of the Deed of Guarantee dated 18.07.2013 executed by Mr. Shantanu Prakash, a
copy of letter of undertaking given by Educomp Solutions Ltd. dated 18.07.2013, a copy of the

supplemental agreement dated 06.09.2013, a copy of the loan recall notice dated 04.05.2017, a copy of
the reply sent by the Corporate Debtor dated 08.05.2017 and written communication by the proposed

Interim Resolution Professional too have been placed on record.

11. For the reasons afore-mentioned, this petition is admitted. Accordingly, the corporate insolvency

resolution process is initiated against the Respondent. Ms. Ritu Rastogi is hereby appointed as an Interim
Resolution Professional. The Interim Resolution Professional shall make a public announcement of the
corporate insolvency resolution process by referring to the instant order passed by this Tribunal. In terms

of Section 14 of the Code, the moratorium will come in operation from the date of this order and there is
complete prohibition from doing the following acts:

"(a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor
including execution of any judgment, decree or order in any court of law, tribunal arbitration panel or
other authority;

(b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any
legal right or beneficial interest therein;

(c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in
respect of its property including any action under the Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002;

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