DHARAMSHI K.PATEL Vs. INDIAN BANK

JUDGEMENT

(1.) This writ petition is filed by the Shareholders and suspended Directors of the Corporate Debtor, namely, Evershine Wood Packaging Private Limited, seeking for issuance of a writ of certiorari to quash the order passed by the National Company Law Tribunal [in short 'NCLT'], Division Bench-II, Chennai, dtd. 23/6/2023 in CP[IB].No.13/2023, admitting the Company Petition with directions and appointing Interim Resolution Professional [IRP] with further direction.

(2.) Brief facts that are necessary for the disposal of this writ petition are as follows:

(3.) The Company/Corporate Debtor, namely Evershine Wood Packaging Private Limited is carrying on business of timber and availed various credit facilities with M/s.Indian Bank from the year 2017. The Corporate Debtor signed the Demand Promissory Note, Letter of Continuity, Agreement of Guarantee etc. The Corporate Debtor also acknowledged the liability which is not in issue. It is admitted that the Corporate Debtor committed default in payment of loan/debt and hence, a Demand Notice was issued on 10/11/2021. The Accounts of the Corporate Debtor was declared as ''Non Profitable Asset'' [NPA] on 31/3/2021 with effect from 23/12/2020 as per RBI guidelines. It is also stated that the Corporate Debtor paid some amounts on irregular basis until 25/10/2021. However, the default continued thereafter. Hence, the financial creditor, namely, the Indian Bank, filed an application under Sec. 7 of the Insolvency and Bankruptcy Code, 2016 [in short 'IBC, 2016'] for initiating Corporate Insolvency Resolution Process [in short 'CIRP'].