TaxTMI 
TaxTMI 
2018 (11) TMI 1351
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....nd Co. (India) Ltd., Corporate Debtor, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor on the grounds that, as on 31st December 2017, Corporate Debtor has defaulted in making payment of Rs. 456.90 crores under the Rupee Term Loan Agreements (herein after referred to as "RTL"). 2. The Petitioner counsel submits that in terms of RTL agreement, the Corporate Debtor is individually and jointly liable as Obligor/Co-obligor with 12 other Videocon group companies to repay the loan granted under RTL. 3. The Petitioner counsel further submits that vide Gazette Notification dated 22nd February 2017, State Bank of Hyderabad (herein after referred to as "SBH"), State Bank of Mysore (herein after referred to....
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.... It is stated in the Petition that the Financial Creditor called upon Videocon Industries Limited (herein after referred to as "VIL"), through its notice dated 27.01.2017, to arrange funds to regularize their account. The Financial Creditor again, vide its letter dated 02.05.2017 to the Chairman and Managing Director of Videocon group informing that the accounts of VIL and Videocon Telecommunications Limited (herein after referred to as "VTL") had turned into non-performing asset and therefore called upon certain co-obligors of the Corporate Debtor to make up-to date payment of dues. As per the terms of RTL agreement, it is submitted, that the notices sent to VIL may be deemed to be sent to the Corporate Debtor. The Petitioner vide their de....
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....due and payable from each of the group companies and thus total due shall become multiple of actual dues and would frustrate the resolution process. 8. This Petition clearly reveals that there is a debt as defined in Section 3(11) of IBC, also there is default in this case within the meaning of Section 3(12) of IBC and no evidence of dispute with regard to the claim amount. 9. In the Rupee Term Loan (RTL) Agreement dated 8.8.2012, this Corporate Debtor along with other associate companies, while executing this Agreement in favour of the Financial Creditor herein, agreed that each obligor, including this Corporate Debtor, shall be liable to the secured parties on a joint and several basis for all the obligations and liabilities of all ....
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....orporate Debtor to initiate CIRP against this Corporate Debtor. 10. The Petitioner Counsel has relied upon letter dated 28.8.2017 issued by the Reserve Bank of India to the applicant directing this Company to give time till 13.12.2017 for resolution outside the court, in the event a viable resolution is not finalised and implemented before the said date, the insolvency proceedings under the provisions of Code should have to be initiated against these Obligors including the Corporate Debtor. It has been further stated that on 6.6.2018, a petition under Section 7 of this Code by this Applicant against VIL was admitted and in respect to other companies, i.e. one of the associate company namely KAIL Ltd.was admitted under Section 9 of the Co....
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.... funds in favour of the Corporate Debtor therefore, this Petition shall be liable to be dismissed. 12. As to the objection raised by the Corporate Debtor that this Petition lies before Civil Court and not before NCLT, our answer is that the RTL Agreement entered between the Banks and the specified companies of Videocon Group including this Corporate Debtor, obliging that they are jointly and severally liable to repay this debt by all or by any one of them as if each one of them is principal borrower to the loan Agreement entered between the Petitioner and these Group companies including the corporate Debtor. In view of the terms of the Agreement, it does not matter as to whether VIL or VTL has been pressed upon to repay the same to the F....
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....ing named the Interim Resolution Professional with his consent, there being no disciplinary proceedings against the same, this Bench hereby admits this petition filed under Section 7 of IBC, 2016, declaring moratorium with consequential directions as mentioned below: I. That this Bench hereby prohibits a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; c) any action to foreclose, recov....