K. Anantha Padmanabha Swamy, Judicial Member -

1. Under Consideration is a Company Petition filed by Shri. S.V. Praveen Rathinam (in short, "Petitioner/Financial Creditor") against M/s. Andavar Home Creators Private Limited (in short, "Respondent/Corporate Debtor") under Section 7 of the Insolvency and Bankruptcy Code 2016 (In short, 'IB Code 2016') r/w Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity, 'IB Rules 2016').

2. Before proceeding with this matter, it would be appropriate to make a note of background facts for the purpose of determination of this petition.

3. The petitioner/FC is a Individual Financial Creditor. Whereas the respondent company, is a Private Limited Company incorporated under the Companies Act, 1956, having its registered office at 35A, 2nd Floor, Andavar Shristi, Pillay Koil Street, Rajaji Nagar, Thiruvanmiyur, Chennai - 600 041. The Respondent Company is engaged in the business of construction and other allied developments etc.

4. The learned Counsel for the Petitioner/Financial Creditor submitted that the Corporate Debtor approached him during the year 2014 for a financial assistance for the purpose of his business. According to the petitioner/Financial Creditor acceded to the request of the Corporate Debtor and paid an amount of Rs.5,00,000/- by a cheque and Rs.20,00,000/- by cash to the Corporate Debtor. The Corporate Debtor executed a promissory note dated 29.11.2014 wherein inter-alia it is mentioned that the entire amount borrowed would be repaid on 29.01.2015. However, the Corporate Debtor failed to make the payment as per the Promissory note. A promissory note should bear the required stamping as required by the Indian Stamp Act, 1889 amended from time to time. However, the Promissory Note has not been stamped and hence has not been taken as a evidence. Later on the Corporate Debtor has issued a cheque No. 122429 dated 17.03.2017 for Rs. 25,00,000/- towards the principal amount whereas on deposit the cheque was returned from the bank with an endorsement that 'Insufficient Funds'. In view of that the Petitioner/Financial Creditor has issued a legal notice dated 24.11.2017 wherein inter-alia, it was demanded to pay back the amount lent, but inspite of receiving the legal notice the Corporate Debtor failed to repay the principal amount with interest totalling Rs.39,95,890.42.

5. It is further submitted that the petitioner, after sending several notices to Corporate Debtor for settling the loan amount and having waited for a long period of time for legitimate loan amount, has filed the application under Section 7 of the IBC, 2016 r/w rule 4 before this Tribunal and sent legal notice to Corporate Debtor and also served a copy of this application with documents, which has been duly acknowledged. An affidavit of service has been filed to this effect. The Financial Creditor has prayed for initiating Corporate Insolvency Resolution Process against the Respondent/CD.

6. Before proceeding with the matter, it is necessary to mention herein that the Applicant/FC has sent notice to Respondent/CD at Registered office address which was delivered. The proof of the same is also placed on file. Thereafter, as per the direction of this Bench, the Financial Creditor has also sent private notices to the Registered Office of the Corporate Debtor for their appearance and reply. The copy of the notice and track delivery report are placed on record along with an affidavit. It appears that the Corporate Debtor is deliberately avoiding to cause appearance in the matter before this Adjudicating Authority. The service of notice on the Corporate Debtor is held sufficient and the Respondent was set ex-parte vide order dated 19.02.2018 due to non-appearance on several occasions. The learned Counsel for the petitioner/Financial Creditor further submitted that the Respondent/Corporate Debtor is unable to pay its debts and therefore he has no other option except approaching this Adjudicating Authority under I & B Code seeking an order for commencing the Corporate Resolution Process and prayed for the appointment of IRP to take over the affairs of the Respondent/Corporate Debtor.

7. The Petitioner/FC has complied with all the requirements as stipulated under the provisions of the I&B Code, 2016 for the purpose of initiating Corporate Insolvency Resolution Process.

8. The Petitioner/Financial Creditor filed the present petition under Section 7 of the I & B Code, 2016 on the basis of the Promissory Note dated 29.11.2014 executed by the Corporate Debtor and cheque issued No. 122429 dated 17.03.2017 for Rs. 25,00,000/-. The petitioner has calculated interest accrued till filing of petition to the principal amount and has shown total defaulted amount as Rs.39,95,890.42.

9. After hearing submissions of the counsel for the petitioner and having perused the record, this Adjudicating authority is satisfied that the petitioner has clearly made out a case by establishing that the Corporate Debtor has defaulted on payment to the petitioner. Also, the petitioner has proved by placing overwhelming evidence viz. Demand Notice, dishonoured cheque, financial transactions which reveal that default have occurred for which the Corporate Debtor was responsible. In the circumstances, we are satisfied with the submissions put forth by the learned counsel for the petitioner, and hence we hereby inclined to admit the instant petition.

10. The instant petition is admitted and we order the commencement of the Corporate Insolvency Resolution Process which shall ordinarily get completed within 180 days, reckoning from the day this order is passed.

11. We appoint Shri. Karthigeyan Srinivasan as Interim Resolution Professional (IRP) proposed by the Financial Creditor. There is no disciplinary proceedings pending against the IRP and his name is reflected in IBBI website. The IRP is directed to take charge of the Respondent/Corporate Debtor's management immediately. He is also directed to cause public announcement as prescribed under section 15 of the I &B Code, 2016 within three days from the date the copy of this order is received, and call for submissions of claim in the manner as prescribed.

12. We declare the moratorium which shall have effect from the date of this Order till the completion of corporate insolvency resolution process for the purposes referred to in Section 14 of the I&B Code, 2016. We order to prohibit all of the following, namely :

(a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;

(b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein;

(c) Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);

(d) The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.

13. The supply of essential goods or services of the Corporate Debtor shall not be terminated or suspended or interrupted during moratorium period. The provisions of sub-section (1) of Section 14 shall not apply to such transactions, as notified by the Central Government.

14. The IRP shall comply with the provisions of Sections 13(2), 15, 17 & 18 of the Code. The Directors, Promoters or any other person associated with the management of Corporate Debtor are directed to extend all assistance and cooperation to the IRP as stipulated under Section 19 and for discharging his functions under Section 20 of the I&B Code, 2016. Accordingly, the application is admitted.

15. The Petitioner/FC as well as the Registry is directed to send the copy of this Order to IRP so that he could take charge of the Corporate Debtor's assets etc. and make compliance with this Order as per the provisions of I&B Code, 2016.

16. The Registry is also directed to communicate this Order to the Financial Creditor and the Corporate Debtor.