Page 618 - IBC Orders us 7-CA Mukesh Mohan

Order Passed under Sec 7
By Hon’ble NCLT Mumbai Bench
the Financial Creditor on 31.7.2012. On the request of the Corporate Debtor dated 31.7.2012, the Term

Loan was re-scheduled on 1.9.2012 and the Corporate Debtor was permitted to pay the balance
outstanding of 21,87,06,810 in 84 months commencing from March, 2013 onwards. Since the Corporate
Debtor has defaulted in making the payments, the Term Loan Account as well as the Cash Credit Account

were classified as non-performing assets on 30.6.2014. The Financial Creditor issued notice u/S 13(2) of
Securitisation and Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002

(SARFAESI), stating that a sum of 22,81,03,470 is the outstanding as on 30.6.2014. The Financial
Creditor has stated that they have filed a Recovery Suit in the Debt Recovery Tribunal and the same is
pending. The Financial Creditor on 14.2.2017 issued a notice to the Corporate Debtor demanding a sum

of 24,41,43,273 with further interest failing which Insolvency Resolution Proceedings will be initiated
against the Corporate Debtor. The Counsel for the Financial Creditor submitted that the business premises
of the Corporate Debtor was already closed and the Corporate Debtor is not filing any financial

statements with Registrar of Companies from 2014 onwards.

3. As to the Petition filed by the Financial Creditor, this Bench, on perusal of the documents filed by the

Creditor, observed that the Corporate Debtor defaulted in making payments and since the Financial
Creditor placed the name of the Insolvency Resolution Professional to act as Interim Resolution
Professional, having this Bench noticed that default has occurred and there is no disciplinary proceeding

pending against the proposed resolution professional, the Application under sub-section (2) of section 7 is
taken as complete, accordingly this Bench hereby admits this Application declaring Moratorium with the

directions as mentioned below:

(a) That this Bench hereby prohibits 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 property including any action under the Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; the recovery

of any property by an owner or lessor where such property is occupied by or in the possession of
the corporate debtor.

(b) That the supply of essential goods or services to the corporate debtor, if continuing, shall not
be terminated or suspended or interrupted during moratorium period.

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