IN RE Vs. THIRUPUR SURYA TEXTILES PVT LTD

JUDGEMENT

(1.) Under adjudication is an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 (I&B Code 2016, for short) read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by the Corporate Debtor, the detailed grounds have been referred therein. The prayer made is to admit the application and to initiate the Corporate Insolvency Resolution Process under the I&B Code, 2016, by appointing an Interim Insolvency Professional. Heard the Sr. Counsels for the Petitioner and the Respondent. Both of the Counsels have submitted the arguments in detail.

(2.) Section 10 (3) (a) of I&B Code, 2016 provides that the corporate applicant shall along with the application furnish the information relating to its books of accounts and such other documents relating to such period as may be specified. Section 10 (3) (b) provides that the information with regard to Interim Insolvency Professional shall also be provided. We have perused the documents and found that the requirement under Section 10 (3) (a) & (b) of the I&B Code, 2016 are complete. The Corporate Debtor proposed the name (Mr. S. Muthuraju) of the Interim Insolvency Professional which reflects from IBBI website and his consent has also been obtained. No investigations are pending against Mr. S. Muthuraju.

(3.) In the aforesaid circumstances, after having been satisfied that the Corporate Debtor has committed default in payment of debt as is evident from the application that has been filed by the Financial Creditor before the Debts Recovery Tribunal (DRT) and has also sent a Possession Notice under Section 13(4) of the SARFAESI Act. The actions which have been taken by the Financial Creditor per se are evidence that the Corporate Debtor has committed default in payment of the debt. Therefore, the Application is complete in all respects. We are inclined to admit the application and order the commencement of the corporate insolvency resolution process which ordinarily shall get completed within 180 days, reckoning from the day this order is passed.