CP (IB) No. 10/Chd/Hry/2017. Case: In Re: SRS Modern Sales Limited Vs. Company Law Board

Case Number:CP (IB) No. 10/Chd/Hry/2017
Party Name:In Re: SRS Modern Sales Limited Vs
Counsel:For Appellant: Rakesh Kumar and Gaurav Mankotia, Advocates
Judges:R.P. Nagrath, Member (J)
Issue:Insolvency And Bankruptcy Code, 2016 - Sections 10, 13(1)(b), 14, 15, 16, 17, 18, 18(1)(f), 3(12), 3(8), 5; Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Sections 13(2), 13(4)
Judgement Date:April 17, 2017
Court:Company Law Board
 
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Order:

R.P. Nagrath, Member (J), (Chandigarh Bench)

  1. This is an application filed by SRS Modem Sates Limited a 'Corporate Debtor' itself in Form 6 as prescribed by sub rule (1) of Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules. 2016 (far brevity, 'the Rules') for initiating corporate insolvency resolution process under Sections "10 of the Insolvency and Bankruptcy Code, 2016 (for brevity, 'the Code') at the instance of the 'Corporate Applicant'. The 'Corporate Debtor' also falls within the term 'Corporate Applicant' as defined in sub-section (5) of Section 5 of 'the Code'.

  2. It is represented by Mr. Rakesh Kumar, learned counsel for 'Corporate Debtor' that the 'Applicant Company' was incorporated on 18.01.2007 with the Registrar of Companies, National Capital Region of New Delhi This is part of Annexure VII containing the Memorandum & Articles of Association of the 'Corporate Debtor'. Learned counsel further represents that as per the document forming part of Annexure VII at Page 991 of Paper Book, the 'Corporate Debtor' altered She Memorandum of Association with respect to the place of registered office by changing it from State of Delhi to Haryana i.e. in district Faridabad. The 'Applicant Company' has been allotted CIN No. U51109HR2007PLC040823.

  3. The authorised share capital of the 'Applicant Company' is ` 2 crores and its paid up capital is ` 1,69,45,240/-. There are presently four Directors of the "Applicant Company' with distinct DIN numbers and eight shareholders as per list Annexure 'VI(F)' with major shareholding belonging to:-

    It is also represented that the 'Applicant Company' passed resolution dated 18.02.2017 authorising Mr. Naresh Kumar Goyal, Whole Time Director and Mr. Sushil Kumar, Director of the company severalty to file the petition before the National Company Law Tribunal, Chandigarh Bench for initiating insolvency proceedings against the company; authorising Credence Law, Advocates and Solicitors to act as counsel of the company and nominating Mr. Sameer Rastogi as Insolvency Professional describing his registration number granted by the Insolvency and Bankruptcy Board of India, on account of the company having defaulted to make payment to the secured creditors who have issued notices under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Copy of the resolution is at Annexure 'A'. Mr. Naresh Kumar Goyal and Mr. Sushil Kumar have been authorised to receive the process on behalf of the company. The instant application has been filed by Mr. Naresh Kumar Goyal stated to be the Whole Time Director of the company and the contents of the application are also supported by his affidavit.

  4. It is further represented that the 'Applicant Company' has the following financial creditors:-

  5. The learned counsel for the 'Applicant Company' would thus contend that there are in all 24 operational creditors out of whom two creditors are in respect of services i.e. lease rent but for these two operational creditors, the amount in default is ` 5000 for Babita Jain and ` 10,000 for Anurag Gupta. There are dues of the Central Government, State Government, employees and ex-Directors of the company apart from other operational creditors from Sr. No. 3 to 17 and addresses of these operational creditors are given in the list Annexure 'B'. The learned counsel further represents that as per Annexure 'II', the total amount in default in respect of service is ` 15000/-. For sundry creditors, it is ` 61,52,80,002.94. There is also amount of more than ` 29 lacs in respect of Government dues i.e. Value Added Tax (VAT). It is, thus, represented that total amount of default in respect of financial and operational creditors would be ` 141,16 crores. The applicant has also attached the invoices/documents evidencing the...

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