THE NATIONAL COMPANY LAW TRIBUNAL

CHANDIGARH BENCH, CHANDIGARH

(Exercising powers of Adjudicating Authority under

the Insolvency and Bankruptcy Code, 2016)

CP (IB) No. 269/Chd/Pb/2021

Under Section 7 of the Insolvency & Bankruptcy

Code, 2016

In the matter of:

Davinder Singh S/o Dalip Singh

having its Registered office at:

387, Model Town, Phase-I Bathinda, Punjab-151001

Mobile No. 9872998726 ….Petitioner-Financial Creditor

Vs.

Harman Rice Private Limited

387, Model Town, Phase-I Bathinda, Punjab-151001

CIN: U15312PB2006PTC030477

Email Id:- harmanrice@yahoo.co.in

…Respondent-Corporate Debtor

Judgment delivered on: 16.04.2024

Coram: HON’BLE MR. HARNAM SINGH THAKUR, MEMBER (JUDICIAL)

HON’BLE MR. L. N. GUPTA , MEMBER (TECHNICAL)

Present:

For the Petitioner : Mr. R.S. Randhawa, Advocate

For the Respondent : Mr. Umang Goyal, Advocate

PER: HARNAM SINGH THAKUR, MEMBER (JUDICIAL)

L. N. GUPTA , MEMBER (TECHNICAL)

JUDGMENT

The present petition has been filed by Davinder Singh (hereinafter

referred to as ‘Petitioner/Financial Creditor’) 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 to initiate the Corporate Insolvency Resolution Process (‘CIRP’) against Harman Rice Private Limited (hereinafter referred to as ‘Respondent/Corporate Debtor’). The petition is signed by Mr. Davinder Singh with the affidavit verifying the contents of the application appended thereto.

2. The Corporate Debtor is stated to be incorporated on 12.07.2006. The company having its registered address at Bathinda, Punjab. Therefore, the jurisdiction lies with this Bench of the Tribunal. The master data of the corporate debtor is stated to be filed as Annexure-A2 of the petition.

3. It is averred that the Corporate Debtor through its Director Manpreet Kaur approached Financial Creditor to provide loan @ 24% P.A. An amount of Rs. 2,31,37,976/- was disbursed, however, amount of Rs. 1,15,69,000/- is reflected in financial statements of Corporate Debtor and the same was disbursed by taking loan from various institutions. It is acknowledged by Corporate Debtor in the financial statement for Financial Year 2019-20 and bank statement. However, despite reminders, the loan has not been paid.

4. It is stated in Part-IV of Form No.1 that the petitioner has provided a loan amount of Rs. 1,15,69,000/- (Rupees One Crore Fifteen Lakhs Sixty Nine Thousand Only) (principal) excluding interest @24% and date of default is 5.11.2021. Copies of the Balance sheet for FY 2019-20, period 01.01.2020 to 31.03.2020 (Annexure-A-4, A-7), Form NO. AOC4 (Annexure-A-5), Form No. AOC2 (Annexure-A-6), Bank Statement for the period 01.02.2021 to 31.08.2021 (Annexure-A-8), and Salary Certificate of Financial Creditor (Annexure-A-12), are attached with the main petition.

5. The notice of this petition was issued to the respondent corporate debtor to show cause as to why this petition be not admitted. The Reply is filed by the Corporate Debtor vide Diary No. 01439/3 dated 10.11.2022, wherein it is stated that the application is filed with the intention to blackmail the Corporate Debtor. The Financial Creditor has suppressed material facts and documents as the Corporate Debtor has partially repaid the personal loan availed by the Financial Creditor. The Financial Creditor and Mr. Bhupinder Singh one of the Directors of Corporate Debtor are real brothers, and the respondent is a family run company, therefore, no written agreement was executed by the parties. The loan was taken to infuse funds into respondent company that were to be utilised for business expansion. There are certain properties jointly owned and disputes arose in relation to save of said properties. There is no debt and disbursement made by the Financial Creditor classified as a loan transaction and the amount was not to be returned back. Further, the amount is below the threshold limit as Rs. 33,07,280/- only has already been