NCLT Mumbai Bench Initiates Corporate Insolvency Resolution Process for Dee Plone Polyster Pvt. Ltd.
Tribunal admits Section 7 application by Pegasus Assets Reconstruction Pvt. Ltd., declares moratorium under Insolvency and Bankruptcy Code, 2016
In a significant ruling, the National Company Law Tribunal (NCLT) Mumbai Bench-II has admitted the petition filed by Pegasus Assets Reconstruction Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP) against Dee Plone Polyster Pvt. Ltd. The judgment, delivered by Shri Ashish Kalia, Member (Judicial) and Shri Sanjiv Dutt, Member (Technical), establishes the existence of debt and default, thereby meeting the criteria for admission under the Code.
The financial creditor, Pegasus Assets Reconstruction Pvt. Ltd., claimed a default amount of Rs. 37,35,74,442.07, based on loan facilities originally sanctioned by Dombivli Nagari Sahakari Bank Ltd. and subsequently assigned to Pegasus ARC through a registered Assignment Deed. Despite objections raised by the corporate debtor regarding procedural lapses and technical defects, the tribunal deemed these curable, emphasizing that such issues do not affect the maintainability of the petition.
In its defense, Dee Plone Polyster Pvt. Ltd. contested the validity of the authorization at the time of filing, lack of compliance with Information Utility regulations, inadequate stamping, and absence of mandatory certificates for electronic records. However, the tribunal found these objections insufficient to bar the admission of the CIRP application. It noted that the acknowledgment of debt in the corporate debtor’s audited financial statements and email correspondence extended the limitation period under Section 18 of the Limitation Act, making the application timely.
The tribunal declared a moratorium under Section 14 of the Insolvency and Bankruptcy Code, imposing restrictions on suits, asset transfers, and recovery actions against Dee Plone Polyster Pvt. Ltd. It appointed Mr. Anuj Bajpai as the Interim Resolution Professional (IRP) to oversee the CIRP, directing the management of the corporate debtor to assist in the process.
This judgment highlights the tribunal’s approach in prioritizing substantive justice over procedural technicalities, ensuring that the insolvency resolution process can proceed efficiently to address financial distress and facilitate potential restructuring.
Bottom Line:
Corporate Insolvency Resolution Process (CIRP) - Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 admitted against Corporate Debtor - Debt and default established, procedural lapses deemed curable, and limitation preserved under Section 18 of the Limitation Act.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 7, 14, 18; Limitation Act, 1963 Section 18; Indian Evidence Act, 1872 Section 65B; IBBI (Application to Adjudicating Authority) Rules, 2016 Rule 4(3)
