ORDER

1. This application is filed under Section 7 of Insolvency and Bankruptcy Code (hereinafter to be referred as “Code”), read with Rule 4 of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking admission of the application for initiation of Corporate Insolvency Resolution Process (CIRP), against Respondent i.e Compar Estates and Agencies Private Limited under the Insolvency and Bankruptcy Code, 2016

2. Averments made by the financial creditor in brief:

a. The financial creditor had extended the financial assistance to M/s.Karvy Stock Broking Limited (Principal Borrower) KSBL (herein) by way of Master facility agreement executed on 04.07.2019. The facilities were secured by an unconditional and irrevocable corporate guarantee in the form of a deed of guarantee dated 01.10.2019 executed by the corporate debtor in favour of the financial creditor.

b. One of the conditions for availing the facilities was creation of charge by way of hypothecation over principal borrowers’ current assets, account assets, receivables of the hypothecated assets, and other pari passu charges, in favour of the financial creditor. For the purpose of creation of aforesaid charge, the Principal Borrower executed a Deed of Hypothecation dated 10.01.2019 which was later amended by way of a supplemental deed of hypothecation dated October 23, 2019.

c. It is averred that the charge was registered with the ROC, Hyderabad and certificate of registration of charge was issued on 07.10.2019. Further, the modification of charge was also registered with the ROC, Hyderabad dated 21.11.2019.

d. In addition to the charge created by way of deeds, the principal borrower also created exclusive mortgage over six immovable properties owned by Mr.C.Parthasarathy, and also provided post-dated cheques. In addition to the corporate guarantee of the corporate debtor, the financial creditor also received personal guarantees of Mr.C.Parthasarathy and Mr.Rajat Parthasarathy, extended by way of Deed of Guarantee dated 01.10.2019 in favour of financial creditor, guaranteeing the repayment of various credit facilities including but not limited to facilities availed by the Principal Borrower from the financial creditor.

e. It is averred that in spite of receipt of the recall notices, the principal Borrower and the guarantors including the corporate debtor had not paid any amount to the financial creditor.

f. It is averred that for recovery of dues payable by the principal borrower and the guarantors including corporate debtor, financial creditor approached the Hon’ble DRT, wherein the Hon’ble DRT, passed interim order restraining the personal guarantors, corporate guarantors and principal debtors from alienating/transferring, encumbering or creating any form of third party interest over the movable or immovable properties. The O.A No.833/2019 which is filed is pending for consideration.

g. Further the order of Hon’ble DRT is communicated to NSDL and requested NSDL not to allow any transactions involving the shares in or otherwise involving their Demat Accounts. Subsequently, NSDL issued letter dated 23.12.2019 informing the financial creditor that HDFC has obtained injunction orders from the High Court of Bombay against the shares held by inter alia the corporate debtor.

h. It is pertinent to state here that aggrieved by the interim order of the DRT, the Principal Borrower and the Guarantors filed writ petitions before Hon’ble High Court of Telangana, Hyderabad. The Writs were allowed, whereby status quo was directed to be maintained in respect of the Scheduled properties till disposal of the IA’s by DRT.

i. Further the financial creditor issued letter to corporate debtor stating that if corporate debtor fails to meet the obligations, will initiate proceedings under IBC. Further financial creditor invoked provisions of SARFAESI, demanding for payment of amount within period of 60 days. Though notice was received, no payment has been made. Further, the princip