AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (11) TMI 225
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.... and Enforcement of Security Interest Act, 2002, having its Registered Office in Mumbai. 3. Sandhya Prakash Limited (Respondent) is a Company incorporated and registered under the Companies Act, 1956 having its Registered Office in Bhopal, Madhya Pradesh. Respondent Company is engaged in the business of printing, newspaper, packaging, real estate etc. 4. Respondent initially obtained loans from Housing and Urban Development Corporation Limited (HUDCO) and Dena Bank which were subsequently assigned to JM Financial Asset Reconstruction Company Limited. After assignment of the debts the Applicant restructured the loans and sanctioned additional loans to the Respondent Company. 5. HUDCO sanctioned a Term Loan of Rs. 18.50 Crores to the Respondent for project construction of Multiplex Mall "AURA" at Bhopal in the State of Madhya Pradesh (hereinafter referred to as "the Mall Project") in respect of above said Term Loan, a Loan Agreement dated 4th April, 2008 was executed between the Respondent, its Directors and HUDCO, The said Loan Agreement was amended. The said Term Loan of Rs. 18.50 Crores is secured by Hypothecation Deed dated 28th April, 2008. The borrowers and the Co-Borrowers ....
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.... favour of Dena Bank. Applicant filed all the documents relating to the loan sanctioned by the Dena Bank. 7. HUDCO and Dena Bank vide separate registered Assignment Agreements both dated 30th March, 2013 assigned the financial asset pertaining to the Corporate Debtor together with the security interest created thereof and all their rights, title, and interest thereon in favour of the Applicant under the provisions of the SARFAESI Act. As per the Assignment Agreements, Dena Bank and HUDCO assigned and transferred the financial debt in favour of the Applicant who is the Financial Creditor. 8. After the assignment of debt in favour of the Applicant, Corporate Debtor and Guarantors vide their letter dated 9th April, 2013 requested the Financial Creditor for restructuring of the outstanding loans of the Corporate Debtor on the terms and conditions mentioned in the letter. On the request of Corporate Debtor, the Financial Creditor vide its letter dated 16th April, 2013 agreed to grant Additional Facility of Rs. 12 Crores and restructuring of the outstanding dues. Accordingly, Restructuring Agreement dated 18th April, 2013 was executed between the Corporate Debtor, Mr. Bharat Patel, Mrs....
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....e outstanding amount in respect of the Restructured Loans and Additional Loans of Rs. 12 Crores and Rs. 5 Crores as on 31st March, 2015 and 31st March, 2016 by executing Letters of Acknowledgement of Total Outstanding Dues on 8th May, 2015 and 20th April, 2016. Corporate Debtor signed Balance Confirmation Letter dated 1st April, 2015 in respect of Additional Loan of Rs. 12 Crores and Rs. 5 Crores. Similarly, Corporate Debtor has confirmed the balance payable to the Financial Creditor as on 31st March, 2016 in respect of Additional Loan of Rs. 12 Crores and Rs. 5 Crores by signing the Balance Confirmation Letter dated 13th April, 2016 confirming the balance of Additional Loans, viz., Rs. 29,76,49,799, The Corporate Debtor in its Balance Sheets for the Financial Year ended on 31st march, 2013, 31st March, 2014 and 31st March, 2016 admitted and acknowledged the outstanding dues due to the Financial Creditor, 10. The Financial Creditor initiated measures under the SARFAESI Act by issuing a notice dated 10th April, 2017 under section 13(2) of the SARFAESI Act to the Corporate Debtor, Mr. Bharat Patel, Mrs. Bharati patel, Mrs. Smita Patel, M/s. Surya Offset Printers (India) Private Limi....
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....Respondent appeared through their learned Counsel and requested time to file Objections. The matter was listed on 8.9.2017 for filing objections. On that date, Respondent took time for filing objections. Ultimately, Respondent filed Reply on 11th September, 2017. 12. In the Reply, it is stated that the Company for the purpose of construction of AURA Multiplex Mall in Bhopal deliberated with HUDCO and Dena Bank for its financing and financial assistance. On 30th March, 2013 due to non-completion of project of constructing the Mall the entire debts and liabilities stood transferred to the present Financial Creditor. The representatives of Corporate Debtor were coerced into agreeing upon the interest rate of 25% per annum, compounded monthly which is inadmissible as per the extant laws of India. In fact applicant gave advertisements in Economic Times and Times of India for sale of AURA Mall for which bills worth Rs. 13.80 lakhs were raised against the Company. The Applicant did not communicate the result of advertisements for 7 months. Thereafter, Applicant issued notice under Section 13(2) of the SARFAESI Act on 10th April, 2017. The assets of the Company worth more than Rs. 300 Cro....
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....itorial jurisdiction over the place where the registered office of the corporate person is located." In the case on hand, the Registered Office of the Company is situated in Bhopal, Madhya Pradesh. Therefore, the National Company Law Tribunal at Ahmedabad is having territorial jurisdiction over the State of Gujarat and Madhya Pradesh. In this context, even if the parties to the Agreements agree for jurisdiction of the Courts at Mumbai, the Courts at Mumbai will have no jurisdiction to entertain the Insolvency Resolution Process in respect of the Corporate Debtor, since Tribunal at Mumbai has no territorial jurisdiction over Bhopal. 14.4 Therefore, it is held that this Adjudicating Authority (NCLT), is having jurisdiction to entertain the Corporate Insolvency Resolution Process in respect of the Corporate Debtor. 15. The Hon'ble National Company Law Appellate Tribunal, in the matter of Innoventive Industries Ltd. v. ICICI Bank [2017] & Anr, decided on 17th January, 2017, held as follows in the following paragraphs; "82. As discussed in the previous paragraphs, for initiation of corporate resolution process by financial creditor under sub- section (4) of Section 7 of the Code, 2....
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.... the Applicant. Since the monies were borrowed by the Corporate Debtor from the HUDCO and Dena Bank on interest basis, it is a 'financial debt'. Such 'financial debt' has been assigned to the Applicant. Moreover, the Applicant has also granted Additional Financial Assistance of Rs. 12 Crores and Rs. 5 Crores to the Respondent on interest basis. Therefore, it is also a 'financial debt'. The documents on record, including the Notice under SARFAESI Act, clearly show that a default has been committed by the Respondent in repayment of the financial debt. Therefore, Applicant is a 'Financial Creditor' and Respondent is a 'Corporate Debtor'. A default has been committed by the Corporate Debtor in repayment of the financial debt. The Applicant proposed the name of Mr. Devendra Padamchand Jain as 'Interim Insolvency Resolution Professional' and also filed his Written Communication. 18. In view of the above discussion, this Application deserves to be admitted and it is accordingly admitted under Section 7(5) of the Code. 19. This Adjudicating Authority hereby appoint Shri Devendra Padamchand Jain, having his address at A-43, Prima Plaza, Opposite DLA School, Bodakdev, Ahmedabad-380054, and....