INCREDIBLE UNIQUE BUILDCON LIMITED Vs. CLUTCH AUTO LIMITED

JUDGEMENT

(1.) This order shall dispose of IB No.20(PB)/2017 and IB No.l5(PB)/2017. In the first Petition, the prayer for initiation of insolvency process has been made by operational creditor (M/s. Incredible Unique Buildcon Pvt. Limited) under Section 9 of the Insolvency and Bankruptcy Code (for brevity 'the Code') 2016 against the 'corporate debtor' , namely, M/s. Clutch Auto Limited. In the second Petition, filed under Section 10 of 'the Code', the 'corporate debtor' (M/s. Clutch Auto Limited) has come forward with a prayer to initiate insolvency process against itself. The second Petition was filed earlier than that of the first Petition.

(2.) M/S. Clutch Auto Limited has approached this Tribunal under Section 10 of 'the Code' read with Rule 7 of Insolvency and Bankruptcy (Application to Adjudication Authority) Rules, 2016 (for brevity 'the Rules'). According to averments made in the petition, the 'corporate debtor' was incorporated as a private limited company on 13.05.1971 and thereafter, it was converted into public limited company on 23.01.1982. The authorized share capital of the corporate debtor is Rs.30 crores (Thirty crores) and the paid up capital was Rs.18,76,04,300 (Eighteen Crores Seventy six lacs and four thousands three hundred only). Vide Board Resolution dated 14.12.2016, Mr. V.K. Mehta, Chairman & Managing Director has been authorized to file the instant petition in this Tribunal (Annexure-2). The name of the Interim Resolution Professional has also been proposed which is that of Mr. Mahipal Sharan Gupta, 2425-A, Hudson Lane, Mall Road, Dr. Mukherjee Nagar, Delhi - 110 009, Email:mahipal(5)indiacap.com. His certificate of eligibility and acceptance to function as an Interim Resolution Professional has also been placed on record (Annexure-5).

(3.) A list of financial and operational creditors has also been attached (P-3). A perusal of the list would show that the 'corporate debtor' is in default for the last more than 3 years. There is then a list of 'operational creditors' which contains as many as 293 names and a total sum owes to them is declared to be Rs. 12,88,32266 (at page 25 of the paper book). The petitioner has further disclosed the details of property against which the loan of the corporate debtor is fully or partially secured along with details of the date of its creation, its estimated value etc. A copy of the audited financial statements of the 'corporate debtors' as petitioner for the financial year ending 31.03.2016 and 31.03.2015 along-with certified provisional financial statement as on 31.01.2017 has also been placed on record (Annexure-6). The statement of affairs has also been filed along with documents as on 31.12.2016, list of assets and liabilities as on 31.1.2017 (P-7), details of the financial/operational creditors (Annexure-3), particulars of any debt owed by or to the 'corporate debtor' or by persons connected to it (Annexure-8) have also been placed on record along with guarantees given in relation to the debts (Annexure P-9). It has also given details of the members of the 'corporate debtors' along with their share holding as on 31.01.2017 (Annexure P-10). An affidavit in support of the Petition has also been filed. It has also been revealed that a reference was filed before the BIFR and the order of admission of reference passed in 2014 has been placed on record (Annexure P-12). A copy of the extract of minutes of the working capital consortium members of the company held on 17.12.2012 approving TVE Study/restructuring package by banks along with numerous letters have also been placed on record. The other record has also been filed.