TaxTMI 
TaxTMI 
2019 (1) TMI 138
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....tate Bank of India'- 'Financial Creditor', the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, by impugned order dated 11th July, 2018 initiated the 'Corporate Insolvency Resolution Process' against 'Uttam Galva Metallics Limited'. 2. The Appellant, a Shareholder has challenged the aforesaid order dated 11th July, 2018, on the ground that the Adjudicating Authority failed to appreciate that out of two 'Credit Rating Agencies' the 'ICRA' accorded an 'investment grade' rating to their 'Resolution Plan' while 'India Ratings & Research' gave rating of below investment grade. Since the two credit rating agencies had submitted diverging views, according to Appellant, the 'State Bank of India' could not have relied u....
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....he 'Corporate Debtor' had plans to execute and implement an extremely viable expansion plan for which the 'State Bank of India' along with the consortium was to disburse loans under a Rupee Term Loan Facility dated 10th October, 2014. According to the aforesaid facilities agreement, the debt to equity ratio was to be maintained at 2:1 and accordingly, the Promoters of the 'Corporate Debtor' infused an amount of Rs. 575 Crores. 8. We have heard learned counsel for the Appellant and perused the records. 9. From the record we find that the Respondent- 'State Bank of India' claimed to have a financial debt of Rs. 306,85,08,344/- as was due from 'Uttam Galva Metallics Limited'- ('Corporate Debtor'). 10. In Form-1 vide Part IV "Particulars of ....
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....on professional in part III, particulars of the financial debt in part IV and documents, records and evidence of default in part V. Under Rule 4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or speed post to the registered office of the corporate debtor. The speed, within which the adjudicating authority is to ascertain the existence of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of the receipt of the application. It is at the stage of Section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that the corporate debtor....