TaxTMI 
TaxTMI 
2018 (1) TMI 1191
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appear and represent the Bank in Courts of Law, Suits, arbitration or other proceedings relating to the BOB and sign pleadings, applications etc. Further, BOB by its Circular Resolution dated 14th November, 2017 authorised all the Executives of the BOB in the category of General Managers in Grade-VII/Deputy General Managers in Grade-VI etc., to file Applications, proceedings before the National Company Law Tribunal and the National Company Law Appellate Tribunal and to sign the papers, petition etc. 3. BOB sanctioned the following facilities to the Corporate Debtor under the Working Capital Consortium Agreement dated 14th October, 2006 as set out in the First Schedule thereof; (i) Cash Credit Facilities upto an overall limit of Rs. 8.5 crores having the following sub-limits: (a) WCDL/FCNR (B) Loan upto a limit of Rs. 6.80 Crores; (b) Export Packing Credit Facility of upto a limit of Rs. 3.80 crores; and (c) FBP/FBD of upto a limit of Rs. 1.25 crores. (ii) Import Letter of Credit Facilities of upto a limit of Rs. 15 Crores. The total debt granted to the Corporate Debtor under the Working Capital Consortium Agreement is Rs. 23,50,00....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dule of the said Agreement as under; (i) Limits under the Cash Predit Facility was enhanced to Rs. 38 Crores with sub-limits; (ii) Letter of Credit Facilities was enhanced to an overall limit of Rs. 92 Crores; and (iii) Limits under the Forward Cover Limit was enhanced up to Rs. 0.95 crores; (iv) The amount under the Corporate Loan was enhanced to Rs. 2.91 crores. The total debt granted to the Corporate Debtor under the Fifth Supplemental Working Capital Consortium Agreement is Rs. 133,86,00,000. 3.5 Thereafter, pursuant to the Sixth Supplemental Working Capital Consortium Agreement, dated August 16, 2013, the Facilities were renewed and enhanced as detailed in Third Schedule of the said Agreement as under; (i) Limits under the Cash Credit Facility was enhanced to Rs. 46 Crores with certain sub-limits; (ii) Letter of Credit Facilities was enhanced to an overall limit of Rs. 111.95 crores; and (iii) Limits under the Forward Cover Limit was enhanced upto Rs. 0.95 crores. The total debt granted to the Corporate Debtor under the Sixth Supplemental Working Capital Consortium Agreement is Rs. 157,95,00,00....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unt of Rs. 171,99,73,549.86 (as on February 22, 2016) and vide another notice dated May 7, 2016 the Corporate Debtor was asked to pay the outstanding amounts as on March 2016 within 60 days of the notice therefrom, however, the Corporate Debtor failed to make such payment. 6. The Petitioner also gave the particulars of securities held by the Banker; the Corporate Guarantees given by various parties guaranteeing secured obligations of the Corporate Debtor; Demand Promissory Notes by the Corporate Debtor; Letters of Undertaking; Letter of Pledge by the Corporate Debtor etc. The Petitioner also provided copies of all the documents executed between the parties; Copies of various Agreements and Sanction Letter viz., copies of Financial Contracts and documents as set out in Part V of the Application; copies of the Report of the Central Repository of Information on Large Credits and Report of TransUnion CIBIL; copies of entries in the bankers' book maintained by the BOB in accordance with the Bankers' Books Evidence Act, 1891; copies of statements of accounts of the Corporate Debtor maintained by the BOB; copies of other documents proving existence of 'financial debt' s....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the Bank in the category of General Managers in Grade- VII/Deputy General Managers in Grade-VI etc., to file applications, petitions, lodge with petitions, representations in the nature of original proceedings, appellate proceedings, writ petitions and/or proceedings of any other kind including the proceedings before the National Company Law Tribunal/s (NCLT) and National Company Law Appellate Tribunal (NCLT) and other Forums. Such a Board Resolution was adopted with reference to the Circular Resolution passed by the Board of the Bank on 14th July, 2017 wherein it was resolved that the above said categories of Executives of the Bank were authorised to take all such actions as set out in the said circular Resolution. In view of, the Power of Attorney coupled with Circular Resolution dated 14th July, 2017, it cannot be said that the power of attorney holder cannot file the present Petition. The objection raised by the Corporate Debtor on this count is not sustainable. 13. The main objection raised is that there is no default on the part of the Corporate Debtor to pay the dues of the Financial Creditor. According to the Corporate Debtor, the Financial Creditor was amongst the o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Code, the debt must be due and payable. 17. The contention of the Corporate Debtor is that in view of the restructuring of the debt none of the facilities granted to the Corporate Debtor by the Financial Creditor is due and payable and therefore there is no default committed by the Corporate Debtor. 18. As regards restructuring of debt, it is required to mention the clauses in Master Circular issued by the Reserve Bank of India declaring the norms on asset classification, provision pertaining to advances of norms on income recognition. The Asset Classification Norms 17.2.2 reads as follows; "17.2.2 The non-performing assets, upon restructuring, would continue to have the same asset classification as prior to restructuring and slip into further lower asset classification categories as per extant asset classification norms with reference to the pre-structuring repayment schedule." 19. In view of the same, in case of a default even in case of restructuring of debts, the account will be treated as 'NPA' with reference to the Pre-structuring Repayment Schedule. Therefore, what has been done, by the Banker Financial Creditor, is in accordance with the Reserve....
X X X X Extracts X X X X
X X X X Extracts X X X X
....i Bench of NCLT cannot be made applicable in favour of the respondent Corporate Debtor. 24. It is settled law that in a Petition under Section 7 of the Code, this Adjudicating Authority has to see whether there is existence of financial debt and a default has been committed in payment of financial debt. On both the aspects, there is sufficient material on record. The finding is against the Corporate Debtor. 25. The Financial Creditor has filed copy of Power of Attorney; copies showing details of dates of disbursement and the amounts in respect of the Facilities; copies of various security documents creating/recording various security interests; copies of certificate of charges with respect to the securities created; copy of Valuation Report; copies of Financial Contracts and documents; copies of the Report of the Central Repository of Information on Large Credits and Report of TransUnion CIBIL dated August 31, 2017 and September, 2017; copies of entries in the bankers' book maintained by the Petitioner Bank as per the Bankers' Books Evidence Act, 1891; copies of Statement of Accounts; and copies of other documents proving existence of Financial Debt. 26. The Petiti....