TaxTMI 
TaxTMI 
2017 (10) TMI 464
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....Baroda, Gujrat. It was incorporated on 02.03.1911 and subsequently constituted as a corresponding new bank on commencement of the Banking Companies Act. The permanent account number of the financial creditor is AAACB1534F and its branch office is at Corporate Financial Services Branch, 1st Floor, Bank of Baroda Building, 16, Parliament Street, New Delhi-110001. 2. The holder of Power of Attorney dated 16.12.2015 Shri Ravi Kant Thakral has been vested with the power to appoint counsel and authorized any officer to sign on behalf of the 'Financial Creditor-Bank of Baroda'. Accordingly, Ms, Archana Mishra has been authorized by the letter dated 03.02.2017 (Exhibit - 1). 3. The Corporate Debtor-Ultra Home Construction Private Limited was incorporated on 07.04.2003. Its authorised share capital is Rs. 20,00,00,000/- (Rupees Twenty Crores) and the paid up share capital is Rs. 6,09,46,120/- (Rupees Six Crore Nine Lakh Forty Six Thousand One Hundred and Twenty) as per the master data available on the website of Ministry of Corporate Affairs. It has its registered office also at Delhi. 4. The details of the 'financial debt' may now be set out. There was a common loa....
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.... and permits both present and future; (c) A first pari-passu charge on all the project's bank accounts including, but not limited to, trust and retention account; (d) A first pari-passu charge on the operating cash flows, book debts, commissions, intangibles, goodwill, uncalled capital, revenues of whatsoever nature and wherever arising, and all other incomes pertaining to the project's present and future; (e) Security interest by way of assignment of all the rights, titles, permits, approvals and interests of the Corporate Debtor in, to and in respect of all the clearances, agreements, permits, approvals, consents in relation to the project including proceeds of insurance policies in favour of the Bob Consortium; (f) Security interest by way of assignment of contractor guarantees, performance bonds and any letter of credit that may be provided by contractor or any third party in favour of the Bob Consortium. The copy of certificate of registration of charges issued by the Registrar of Companies with respect to the aforementioned securities have been annexed herewith at Exhibit - 7. A copy of the memorandum of entry dated January 15....
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....d August 17, 2016 and September 26, 2016 by BoB to the 'Corporate Debtor' indicating persistent overdues. The copy of the aforementioned documents proving existence of 'financial debt' and default have also been annexed (Exhibit - 12, 13, 14 and 15). 11. The application has been duly presented by Ms, Archana Mishra on the basis of authorization dated 03.02.2017 (Exhibit-1). 12. The 'corporate debtor' has opposed the admission of the application by arguing that the demand of Rs. 36,88,94,153/- is wholly arbitrary. The applicant is part of consortium of banks and the common loan agreement was executed for providing a term loan of Rs. 288,00,00,000/-. In the said agreement the Bank of Baroda, Bank of India, Oriental Bank of Commerce, Punjab National Bank and Union Bank of India are described as consortium or the lenders. It is also conceded that the applicant was designated as lead bank of the Consortium. The applicant cannot individually enforce any right or obligation of the common loan agreement. The application even otherwise is incomplete and the same is liable to be rejected. A reference has been made to the provisions of Section 7 (5) (a) of the....
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.... not require any serious consideration because Explanation to section 7(1) expressly clarifies that for the purposes of section 7 a default includes a default in respect of financial debt, owed not only to the applicant-financial creditor but to any other financial creditor of the Corporate debt. Moreover, no other financial creditor has come to the forefront to oppose the application. 15. The respondent has further stated the land in question is not owned by the 'corporate debtor'. As a matter of fact, the land is owned by Noida Authority. The 'corporate debtor' has issued a lease, which is governed by various covenants. The covenants include the provisions of cancellation of the lease and to take over the entire project, including the land in case of default in payment. It is claimed that the aforesaid stipulation has found further strength from the RERA Act. The respondent has further stated that delay has been caused on account of the order dated 07.04.2015 passed by the National Green Tribunal which had banned construction activity in the area (Annexure R/2). As a result, construction was completely suspended. Reference has also been made to the Joint Lender....
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....mount and the date of default is as under:- Sr. No. Facility Total overdue at 30th April], 2017 (Principal + Interest + Overdue Interest) (INR) Date of Default Days of Default RTL Facility> Rs. 36,88,94,153 (31,92,31,627+2,28,00,753+2,68,61,773) 30-6-2016 304 days Total Rs. 36,88,94,153 19. The default has again occurred when a demand notice dated 02.03.2017 was issued (acceleration notice) (Exhibit-12) and the repayment of the defaulted amount was required to be made within seven days from the date of acceleration notice. The principal defaulted amount in most documents is the same. However, in one of the documents it may vary as the calculation has been made for different dates. Therefore, it would not be such a substantial and a material factor warranting the dismissal of the application. Any objection to the amount of default shall remain available to the 'corporate debtor' before the 'Committee of Creditors'. 20. In order to arrive at a correct conclusion, it would be further necessary to examine the provisions of Section 7 (2) and 7 (5) of the Code which read as under: "Ini....
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....d 30.06.2017 issued to Mr. Sanjay Gupta by the Insolvency and Bankruptcy Board of India has already been placed on record- He has registration No. IBBI/IPA-001/IP-POO 117/2017-18/10252. He has also made declaration and sent a written communication dated 03.08.2017. According to the declaration made by Mr. Sanjay Gupta, no disciplinary proceedings are pending against him nor he is a related party to 'Financial Debtor' namely Ultra Home Construction Private Limited nor he is an employee of the Ultra Home Construction Private Limited. 22. We have heard the arguments on the application bearing C.A. No. 340(PB)/2017 and vide order dated 27.09.2017 directed the same to be added with the original file. Accordingly, we accept the prayer made in the application as no serious objection has been raised against the substituted Interim Insolvency Professional. 23. For the reasons, aforementioned this petition is admitted. Shri Sanjay Gupta who is duly registered with Insolvency and Bankruptcy Board of India (IBBI/IPA-001/IP-P00117/2017-18/10252), has been proposed as an Interim Resolution Professional. He is hereby appointed as an Interim Resolution Professional. He has filed his ....