VIVEK GUPTA Vs. PROACTIVE PLAST PVT LTD

JUDGEMENT

(1.) This petition has been filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with the applicable rules. Vide the said petition, the Applicant who has claimed to be a Financial Creditor seeks to initiate Corporate Insolvency Resolution Process against the Corporate Debtor on grounds of non-payment of his debt.

(2.) Brief facts of the case are that a sum of Rs. 1,81,00,000/- was given as a loan by the Financial Creditor to the Corporate Debtor. It is averred that as per their mutual understanding, the said loan was to be repaid on demand with interest @ 18% per annum. The Financial Creditor was also appointed as a Director in the Respondent company on 19.12.2012 and according to him, he remained in the Board till 2015. The Financial Creditor is also a shareholder and holds .07% equity in the Respondent company.

(3.) It is stated by the Financial Creditor that as the Corporate Debtor failed to take any steps to liquidate or reduce the liability qua him despite various reminders, he was constrained to issue notice under Section 433 and 434 of the Companies Act, 1955. This was followed up by filing a winding up petition before the Hon'ble High Court of Delhi being Company Petition No. 1204 of 2016. The said petition was subsequently transferred to the Principal Bench, NCLT, but was withdrawn with liberty to file a fresh one in the required format in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016. Name of the Interim Resolution Professional to be appointed has also been proposed.