IN RE Vs. TAYO ROLLS LIMITED

JUDGEMENT

(1.) Petitioner has filed this petition under section 10(1) of Insolvency & Bankruptcy Code, 2016 for initiation of Corporate Insolvency Resolution Process (from now on referred as CIRP) . Relying on the Board Resolution dated 3rd July 2017 Shri Suresh Padmanabhan, Deputy Chief Financial Officer, Tayo Rolls Ltd. has presented this petition under section 10 by which the Corporate Applicant was authorised to initiate the Corporate Insolvency Resolution Process. Board Resolution is added to the petition as Annexure -VII.

(2.) It is stated in Part III of the application that corporate applicant, i.e. corporate debtor has defaulted all amounts currently due and payable to its non-related party Financial Creditors towards its repayment obligations except the penal interest of a total amount of Rs.60.04 lakhs for the waiver of which request has already been made by the Corporate Debtor.

(3.) Corporate Applicant/ Corporate Debtor has further stated that it had raised financial debts from non-related party Financial Creditors, except for the non-fund based liability aggregating to Rs.602.87 lakhs and penal interest of Rs.60.04 lakhs. Corporate Debtor had raised an amount of Rs.6000 lakhs from its holding company i.e.Tata Steels Ltd., as has been specified. Corporate Debtor currently owes a sum of Rs.60.04 lakhs towards penal interest to non-related party financial creditor for which a request for waiver has been made. The Corporate Debtor owes an amount aggregating to Rs.7043.29 lakhs to its holding company, Tata Steels Ltd. for which no demand has yet been issued and hence such amount is not due as on the date of this application.