Provisions of moratorium Not applicable to transactions which might be notified by Central Government: NCLT admits Insolvency Application [Read Order]
Since there is no dispute as to the existence of ‘Default’ on the part of the Corporate Debtor, the present petition made by the Financial Creditor is complete is all respects as required by law
NCLT admits Insolvency Apllication
NCLT admits Insolvency Apllication
In a recent case, the National Company Law Tribunal (NCLT) New Delhi Bench has held that provisions of moratorium is not applicable to transactions which might be notified by Central Government and admitted the Insolvency application in establishment of default debt.
The Company Application filed under section 7 of the Insolvency and Bankruptcy Code, 2016 (“the Code”) by M/s Authum Investment & Infrastructure Limited seeking to initiate CorporateInsolvency Resolution Process (“CIRP”) against M/s Mohanbir Hi-Tech Build Private Limited (“Corporate Debtor”).
The Corporate Debtor was incorporated under the Companies Act, 2013. The application was filed before the Adjudicating Authority on the ground that the Corporate Debtor has defaulted to make a payment of a sum of Rs. 488,52,85,932/- (Rupees Four Hundred Eighty-Eight Crores Fifty-Two Lakhs Eighty-Five Thousand Nine Hundred and Thirty Two) which includes the principal amount of Rs. 181,05,00,000/- (Rupees One Hundred Eighty-One Crores Five Lakhs), Interest as per terms of loan agreement amounting to Rs. 145,51,57,274/- (Rupees One Hundred Forty-Five Crores Fifty-One Lakhs Fifty-Seven Thousand Two Hundred and Seventy-Four) and Penal Interest as per terms of loan agreement amounting to Rs. 161,96,28,658/- (Rupees One Hundred Sixty-One Crore NinetySix Lakhs Twenty-Eight Thousand Six Hundred and Fifty-Eight).
The alleged date of default is stated as 14.11.2019. The Financial Creditor has also filed the NeSL certificate which reflects that as on 28.12.2019, the Corporate Debtor has defaulted in the payment of Rs. 204,74,45,546/- owed to the Financial Creditor.
This Adjudicating Authority vide its Order directed the Applicant to issue notice to the Respondent. The Applicant duly issued the notice to the Respondent and filed an Affidavit of Service dated 24.04.2025 in this regard. During the course of arguments, the Counsel appearing on behalf of Respondent sought time to file vakalatnama. It is noted that the Counsel appearing on behalf of the Corporate Debtor was granted time to file the vakalatnama on 25.04.2025 and again on 09.05.2025.
It was evident that despite being granted several opportunities, the Counsel appearing on behalf of the Corporate Debtor failed to file its vakalatnama and reply. Henceforth, the Corporate Debtor has been set as ex-parte vide Order dated 27.05.2025.
Since the registered office of the Corporate Debtor is in Delhi, this Tribunal which has territorial jurisdiction over the Union Territory of Delhi, is the Adjudicating Authority in relation to the prayer for initiation of Corporate Insolvency Resolution Process in respect of the respondent Corporate Debtor under Section 7 of the Code.
The acknowledgement of debt by the Corporate Debtor as reflected in the Audited Financial Statements of the Corporate Debtor as on 31.03.2022, 31.03.2023 and 31.03.2024, a fresh period of limitation commences from the date of each acknowledgement. Henceforth, the present petition has been duly filed within the period of limitation.
Since there is no dispute as to the existence of ‘Default’ on the part of the Corporate Debtor, the present petition made by the Financial Creditor is complete is all respects as required by law. The Petition established that the Corporate Debtor is in default of a debt due and payable and that the default is more than the minimum amount stipulated under Section 4(1) of the Code, stipulated at the relevant point of time.
In the light of the above facts and circumstances, and in terms of Section 7(5) (a) of the Code, the bench of Justice Jyotsna Sharma, Anu Jagmohan Singh,Member (Technical) admitted the petition for initiating CIRP against M/s Mohanbir Hi-Tech Build Private Limited, the Corporate Debtor and CIRP of M/s Mohanbir Hi-Tech Build Private Limited is initiated.
It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Central Government and the supply of the essential goods or services to the Corporate Debtor as may be specified, are not to be terminated or suspended or interrupted during the moratorium period. In addition, as per the Insolvency and Bankruptcy Code (Amendment) Act, 2018 which has come into force w.e.f. 06.06.2018, the provisions of moratorium shall not apply to the surety in a contract of guarantee to the corporate debtor in terms of Section 14 (3) (b) of the Code.
The applicant Financial Creditor shall deposit a sum of Rs. 2 Lakhs (Two Lakh Rupees) with the Interim Resolution Professional namely NPV Insolvency Professionals Private Limited to meet out the expenses to perform the initial functions assigned to him in accordance with Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulations, 2016.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
