JUDGEMENT

The present petition has been filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ‘Code’) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Intec Capital Ltd. (hereinafter referred to as ‘Petitioner/Financial Creditor’) to initiate the Corporate Insolvency Resolution Process (‘CIRP’) against Guava Softs Pvt. Ltd. (hereinafter referred to as ‘Respondent/Corporate Debtor’). The petition is signed by Mr. Chandan authorized by the Financial Creditor and the affidavit verifying the contents of the application is on pages 33 to 35 of the petition. A copy of the Authority Letter along with notification is attached as Annexure 3 of the petition.

2.The master data of the corporate debtor is stated to be filed as Annexure-2 of the petition. The Corporate Debtor is stated to be incorporated on 12.05.2006.

The company has its registered address at2nd Floor, Sohan Palace, Opp BSNL Telephone Exchange, Mall Road Ludhiana PB 141001 IN. Therefore, the jurisdiction lies with this Bench of the Tribunal.

3.Brief facts raising to the present Company Petition which are narrated hereunder:

3.1 M/s Intec Capital Limited ('Intec'/'Financial Creditor'/ Applicant') is a Non-Banking Financial Company duly registered with Reserve Bank of India, engaged inter-alia in the business of providing financial facility .

3.2 M/s Guava Softs Pvt. Ltd. ('Corporate Debtor'/ 'Respondent'} is a company engaged in the business of providing information technology-based services including developing websites and dealing in domains. Its promoters/ directors/ shareholders approached the Financial Creditor for availing financial facilities, by making an application to the Financial Creditor.

3.3Based on the documents and information given to the Financial Creditor and the confidence shown to repay the loan amount, the Financial Creditor approved the loan application of Corporate Debtor and issued the sanction letter dated 17.04.2013 for loan facility of Rs. 94,00,000 (ninety four lakhs only). Thereafter, the Corporate Debtor entered into Loan Agreement dated 25.04.2013 and various other transitional documents with the Financial Creditor.

3.4That as per the Loan Agreement, the Financial Creditor had financed the loan on the terms i.e. Interest 14.24% Reducing ; Amount (INR) Rs 2,58,030 each in 48 installments; First EMI & Last EMI - 16.05.2013 & 16.05.2017 ; Collateral Amount (INR) 28,20,000 ; Finance Charges Amount (INR) 1,16,180. Pursuant to the loan agreement and towards performance of the loan agreement, the Corporate Debtor duly handed over post­dated cheques to the financial creditor towards the repayment of loan. As per the Loan Agreement certain assets were hypothecated to Financial Creditor; on which first and exclusive charges by way of hypothecation was created in the favour of Financial Creditor, which is as follows : -

Sr.No . Particulars Amount 1 Raised Floor Model No. 40NAL 76,146 22.84 Tr (Actual Capacity) Amico Model 6, 15,268 3 Poer Backup System, with all accessories.

5,66,943 426 AH Battery 1,49,962 UTM hardware Appliance 12,88,813 Cisco 3925 3,09,750 IBM Flex System 64,57,500 825 KVA Solent DG Set 3,15,000

3.5As per the Loan Agreement and the letter executed by the Corporate Debtor for the Disbursement Instruction of the Loan Amount of Rs. 94,00,000/-, the loan was disbursed by the Financial Creditor vide cheque on different dates to various vendors of the Corporate Debtor and the Corporate Debtor itself. Details of Disbursement for Loan Account LNLUD00l13140002314 is as follows :-

Sr.

No.

Particulars Date Cheque No.

Amount Disbursed (INR) 1 Targus Technologies Pvt Ltd 11/05/13 333802 15,00,000 2 Targus Technologies Pvt Ltd 05/05/13 333803 15,00,000 3 Targus Technologies Pvt Ltd 03/05/13 333804 10,00,000 4 Guava Softs Pvt. Ltd. 29/04/13 333805 20,42,070 5 Balaji Gensets 17/0