IN RE Vs. ENNORE COKE LIMITED

JUDGEMENT

(1.) This application has been filed under section 10 (1) of the Insolvency And Bankruptcy Code 2016.

(2.) Counsel for Corporate Debtor appeared. At this stage, Financial Creditors Viz., State Bank of India represented by Counsel Mr.K.Chandrasekaran, Union Bank of India represented by Counsel Mr.M.Muthuperiasamy and Indian Overseas Bank represented by Counsel Mr.Annal P, caused appearance. Counsels representing both the sides submitted their arguments in detail. Counsel for SBI driw our attention to the resolution that came to be passed on 02.06.2017 as to the revival plan for Corporate Debtor within the period of three months from the date of resolution. The counsel for UBI, during the course of arguments, drawn our attention to some of the documents which indicate that the Corporate Debtor is a going concern and it is also submitted that the applicant Corporate Debtor has been in a position to settle the amount due to financial creditors. However, the contention that has been made by the counsel for UBI has been refuted by the counsel for petitioner stating that the financial position of the company is negative. So the claim of the UBI that the applicant would have been in a position to pay the outstanding debt of the Financial Creditors is not correct.

(3.) We have perused the petition and it is on record that SBI, one of the Financial Creditors has already proceeded against Corporate Debtor under the SARFAESI Act, 2002 and filed an application before the DRT, Calcutta. It is also on record that UBI also has filed OA before the DRT, having jurisdiction to try the same. IOB is also the objector to the application of the Corporate Debtor on similar grounds. The proceedings that have been initiated by SBI, IOB, UBI and also the admission of counsel for applicant Corporate Debtor show that there is default on the part of Corporate Debtor in making payment of debt to the Financial Creditors. From this it is clearly established that the Corporate Debtor defaulted in making the payment of outstanding debt to the creditors.