NATIONAL COMPANY LAW TRIBUNAL NEW DELHI BENCH (COURT-II)

Company Petition No. (IB)-251(ND)/2021 IN THE MATTER OF:

M/s Bezel Stockbrokers Private Limited Registered office at:

D-6/16, Vasant Vihar, New Delhi - 110057 … Corporate Applicant/Corporate Debtor Versus

1. Security Exchange Board of India SEBI Bhavan BKC Plot No. C-4A-G Block, Andra Kurla Complex, Bandra (East), Mumbai, Maharastra – 400051 … Respondent No. 1

2. Insolvency and Bankruptcy Board of India

7th Floor, Mayur Bhawan, Shankar Market, Connaught Circus, New Delhi - 110001 … Respondent No. 2 Section: 10 of IBC, 2016 Order Delivered on: 02.08.2023 CORAM SH. ASHOK KUMAR BHARDWAJ, HON’BLE MEMBER (J)

SH. L. N. GUPTA, HON’BLE MEMBER (T)

PRESENT:

For the Applicant : Adv. Shikhar Tandon For the Respondent : Adv. Abhishek Baid and Adv. Praneet Das for SEBI

ORDER

PER: SH. L. N. GUPTA, MEMBER (T)

M/s Bezel Stockbrokers Private Limited (for brevity, the ‘Corporate Applicant/Corporate Debtor’) has filed the present application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (for brevity, the ‘IBC 2016’) with a prayer to initiate the Corporate Insolvency Resolution Process against it.

2. The Corporate Applicant namely, M/s Bezel Stockbrokers Private Limited is a Company incorporated on 01.02.2013 under the provisions of the Companies Act, 1956 with CIN U65990DL2013PTC247789 having its registered office at D-6/16, Vasant Vihar, New Delhi - 110057, which is within the jurisdiction of this Tribunal. The Authorized Share Capital of the Respondent Company is Rs.1,00,00,000/- and Paid-up Share Capital is Rs.1,00,00,000/- as per the master data annexed with the application.

3. It is stated by the Corporate Applicant that it is a stock broker company incorporated under the Companies Act, 1956 registered with ROC Delhi. The Corporate Applicant has also been registered with the Securities and Exchange Board of India (SEBI) under (Stock Brokers and Sub-Brokers) Regulations, 1992 vide Registration number INZ000266237 since 14.06.2019. It has been carrying on the business as a stock broker/proprietary trading member/clearing member for carrying on the activities of buying, selling, or dealing in securities/ clearing and settlement of trades and for carrying on such other activities as are permitted by stock exchange(s)/clearing corporation, subject to the conditions specified therefor, from time to time, by the Board since June 2019. The Corporate Applicant has further submitted the following:

3.1 Due to the financial crisis, it was not able to deposit the 20% margin of the total price of the stocks purchased by the Corporate Applicant on behalf of its clients as per the SEBI rules, due to which the amount of the shares was forfeited by the SEBI, creating a huge liability of Rs.3,35,84,815/- towards its Shareholders/ Clients.

3.2 The advance funds (Cash & Collateral), which were given to the Corporate Applicant by its Clients, which were unused and kept for future orders as reflected in the ledger account of the respective prospective shareholder are also not paid back, creating a further liability of Rs.91,78,621/-.

3.3 Thus, the total liability of the Corporate Applicant towards its clients comes to Rs.4,27,63,436/-. The Corporate Applicant has been incurring mounting losses year after year and due to this, it has become impossible for it to carry on its operations. Consequently, the corporate Applicant has been declared a defaulter and expelled from the NSE membership. Hence, it has been decided by the Corporate Debtor to file this Application under section 10 of IBC 2016.

4. The particulars of the unpaid financial debt, the list of 110 financial [

Creditors, and the date of default are mentioned in Part III of the application, which is reproduced overleaf:

5. From the perusal of the above, it is observed that the Corporate Applicant has stated that it has committed default to the tune of Rs.4,27,63,436/- only.

6. The Corporate Applicant has also annexed the copy of the Special Resolution pas