TaxTMI 
TaxTMI 
2019 (1) TMI 453
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....by Financial Creditor, namely Edelweiss Asset Reconstruction Co. Ltd. against Corporate Debtor, namely M/s Birla Cotysn (India) Limited stating that the Corporate Debtor failed to make payment of Rs. 29,85,67,332.79/-. The Company Petition is filed to initiate Corporate Insolvency Resolution Process against the Corporate Debtor. 2. The Petitioner herein is the Assignee vide registered Deed of Assignment dated 26.5.2017 whereby Axis Bank Limited ('Assignor') assigned the dues of Term Loan and Cash Credit to the Petitioner. 3. The case of the Petitioner is that Financial Facilities, being term loan and cash credit to the tune of Rs. 20,00,00,000/- (Rupees Twenty Crores Only) was granted to the Corporate Debtor by Axis Bank (Assignor) wi....
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....iled by the Corporate Debtor, inter-alia, stating a) The discrepancies in the petition pointed at earlier hearing have not been rectified/ removed by the Financial Creditor yet. b) The principal amount claimed is different in the present petition and the earlier notice served on the Corporate Debtor under section 13(2) of Securitisation Act, 2002. c) The Financial Creditor has also acquired the financial assets from two other banks and ought to have made full and proper disclosure. d) Without prejudice, the Corporate Debtor made a fair and reasonable offer for one time settlement of the dues of the financial creditors by its letter dated 21.6.2018. 8. The Counsel for the Corporate Debtor argued that th....
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....t an acknowledgment made after the expiry of the period of limitation has to be coupled with a promise to pay an amount as required under Section 25 of the Indian Contract Act, 1872. Since in the present case, the acknowledgment given after the period of limitation is not coupled with a promise to pay, the limitation for the time barred debt is not being reset. 12. With regards to the reliance on the 'Without Prejudice' letter by the Financial Creditor, the Corporate Debtor contended that the same has not been filed by the Financial Creditor and hence cannot be relied upon by the Financial Creditor. 13. The Counsel for the Financial Creditor also placed reliance on the Judgment of Supreme Court in the matter of M/s Innoventive Industr....
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.... initiating 'Corporate Insolvency Resolution Process" under Section 7 of the 'I&B Code'." 15. The Counsel for the Financial Creditor rebutted the argument regarding exact amount of default by relying on the case of Phoenix Arc Private Limited v Sarbat Cotfab Private Limited CP (IB) No. 123/Chd/CHD/2017 with C.A. No. 19/2018 wherein the Hon'ble NCLT stated that "63. The question about the quantum of the amount due is to be ultimately found by the Interim Resolution Professional or the Resolution Professional, as the case may be and not to be exactly decided while disposing off the petition...". 16. The Financial Creditor also drew attention of the Bench to the conduct of the Corporate Debtor who had on the last occasion taken time with....
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....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, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. II. That the supply of essential goods or services to the corporate debtor, if continuing, shall not be terminat....