Application for corporate insolvency resolution was dismissed as it fell within the exempted period under Section 10A of the IBC, 2016.

ORDER

[Per: Bench]

1. The Present Application is filed on 26.12.2023 by the Applicant M/s. Canbank Factor Limited, (hereinafter referred to as “the Applicant/Financial Creditor”) against the Respondent M/s. Shrenik Limited (hereinafter referred to as “the Respondent/Corporate Debtor”) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016”) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiation of Corporate Insolvency Resolution Process (CIRP) against the Respondent/Corporate Debtor, to appoint Interim Resolution Professional (hereinafter referred to as “IRP” and declare the moratorium for having defaulted payment of its outstanding dues Rs.1,05,57,534.35/- including interest as on 30.11.2023. The date of default as stated to be 20.08.2020.

2. On perusal of Part-I of the Form-1 reveals that the application is filed by the Applicant/Canbank Factor Limited, is a subsidiary of Canara Bank is registered as a Non-Banking Finance Company (“NBFC”) incorporated under “Indian Companies Act, 1956”, having its Registered office at 67/1, 2^nd Floor, Kanakpura Main Road, Near Lalbagh West Gate, Basavnagudi, Bangalore-560004 through one Mr. Pradeep Kumar Solasa, working as Business Head who has been authorised by an the Power of Attorney issued on 14.07.2023 which is annexed at Annexure-3 on pages 31 to 35 of the present application.

3. On perusal of Part-II of the Form-1 reveals that the Respondent is one M/s. Shrenik Limited having CIN No. L51396GJ2012PLC073061. The Respondent was incorporated on 20.12.2012 with Registration No:073061 and having registered office at Plot No. 505-508, Ten 11, Chimanlal Giridharlal Road, Beside Mardia Plaza, Ahmedabad, Gujarat-380009.

4. On perusal of Part-III of the Form-1 reveals that the Applicant has proposed the name of the Interim Resolution Professional („IRP‟) Mr. Ravi Kapoor, having registration No. IBBI/IPA-002/ IP-N00121/ 2017-18/ 10290. The proposed IRP has also filed his consent in Form-2, written communication annexed with the Application as Annexure- 34 (Page-210-212) of the present petition as per the requirement of Rule 9(l) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. There is a declaration made by him that there are no pecuniary or personal relationship with any of the stakeholders entitled to distribution under Section 53 of 178 of the Code.

5. On perusal of Part-IV of the Form-1 reveals that total dues as claimed by the Applicant are Rs.l,05,57,534.35ps consisting of principle and interest up-to 30.11.2021.

6. The brief facts as contended by the Applicant are as under:-

a. It is stated that the Respondent - M/s. Shrenik Limited is engaged in the business of wholesale trading in different types of papers like copier, maplitho, coated paper, FBB Board and a speciality paper commodity royal executive bond.

b. It is submitted that the Respondent Company has inked a Master Buyers agreement with one M/s. Mynd Solutions Pvt. Ltd. on 06.12.2019 for participation on TReDs Platform called M1 exchange, for discounting and rediscounting of the Trade Receivables of the Suppliers due from Buyers, through the Financier enrolled on M1. It is stated that the Respondent Company has also given a National Automated Clearing House Mandate dated 28.01.2023 authorising Mynd solutions Private Limited to debit upto a sum of Rs.1.00 Crore from its bank account bearing no.1003002100024159 in Punjab National Bank.

c. It is submitted that the Applicant has also inked Master Financer Agreement with M/s. Mynd Solutions Pvt. L