Page 41 - IBC Orders us 7-CA Mukesh Mohan

Order Passed Under Sec 7
Hon’ble NCLT Principal Bench

and the tracking report have also been filed along with an affidavit which shows that the item was

received by the Corporate Debtor on 03.05.2017 therefore, the service is complete. Despite service no one
has preferred to appear on behalf of respondent to oppose the claim made by the Financial Creditor.

8. We have heard learned counsel for the Financial Creditor at length and have examined the record

with his able assistance. It is evident that Financial Creditor has placed on record all the documents
concerning the default and the name of resolution professional proposed to act as an interim resolution
professional. We are satisfied that the default has occurred and the application in all other respects is

complete. Moreover, there is no opposition despite the fact that the service has been effected. Therefore,
we are inclined to admit this petition.

9. As a sequel to the above discussion this petition is admitted. The necessary consequence of
admission is that a declaration is made in terms of Section 13 (a) for the purpose of Section 14 of the

Code. A direction is issued to the interim resolution professional Shri Sanjay Kumar Agarwal to make
public announcement in accordance with the provisions of Section 13 (1) (b) of the Code. The corollary

of the declaration is that moratorium under Section 14 of the Code shall come in operation from the date
of this order and the following prohibitions would come in operation:-

"(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;

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

any action to foreclose, recover or enforce any security interest created by the corporate debtor in

respect of its 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;

(d) the recovery of any property by an owner or lessor where such property is occupied by or in the

possession of the corporate debtor."

10. The aforesaid prohibitions shall remain subject to sub section 2 86 3 of Section 14 of the Code. It
shall not apply to the supply of the essential goods or services to the Corporate Debtor as may be
specified. The supply shall not be terminated or suspended during the moratorium period nor the

prohibition would apply to transactions which may be notified by the Central Government.

11. The Petition is disposed of in the above terms

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