2017 (12) TMI 1652

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....nd Mr. Sahil Mongia, Advocates. For Respondents: - Mr. Rajiv S. Roy, Avrojyoti Chatterjee, Mr. Abhijit S. Roy, Ms. Jayshree Saha, Advocates, Mr. Arnav Dash, Advocate, Mr. Abhishek Agarwal, Advocate for SBI. JUDGMENT Sudhansu Jyoti Mukhopadhaya, This appeal has been preferred by Mr. Ajay Agarwal, Director/shareholder of M/s. Ashok Magnetics Limited ('Corporate Debtor') against the order dated 4th September, 2017 passed by Adjudicating Authority (National Company Law Tribunal), Chennai in Company Petition No. 551(IB)/CB/2017, whereby and whereunder the application preferred by Respondents- the Central Bank of India and the State Bank of India ('Financial Creditors') under Section 7 of the Insolvency and Bankruptcy Code, 2016 (h....

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.... no payment has been made. 6. In so far as 1st Respondent- Central Bank of India is concerned, learned counsel for the Appellant submitted that there is similar 'mismatch of figures and dates of default' including Cash Credit facility, Letter of Credit facility, Fixed Deposit Credit etc. Following facts have been highlighted: " 2. CENTRAL BANK OF INDIA (R1) : Description Amount i. Part IV, Form 1 at Pg. 95 Rs. 12,96,57,829.19 as on 30.11.16 ii. See SBI S.13(2), Sarfeasi Notice (Pg.177) dt. 17.12.15 wherein NPA dt. 26.08.15 Rs.10,98,76,416.00 under 2 facilities namely: CC - Rs. 620,21,860 Inland LC Devolved - Rs. 4,78,54,556 2.1 For CC Facility: Description Amount The breakup of the CC facility....

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....fund based' limits and Rs.5.50 crores in the form of 'non-fund based' limits. 9. According to Respondents, on account of several alleged envisaged losses, the 'Corporate Debtor' filed a reference before the erstwhile 'Board for Industrial and Financial Reconstruction' (BIFR) under the provision of the Sick Industrial Companies (Special Provisions) Act, 1956 ("SICA") (now repealed), based on its audited accounts for the financial year ended on 31st March, 2015 was calculated. It was brought to our notice that the Respondents have also taken steps under Section 13(2) of the SARFAESI Act against the 'Corporate Debtor' as well as the guarantors to repay entire outstanding as on 16th December, 2015. The parties have moved before the Debt Reco....

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....h the order impugned therein. 11. In the present case, the Respondents have explained the difference between the claim amount as made on 19th October, 2015 and as on the date of filing in the year 2017, which has been calculated, taking into consideration the interest payable in the meantime and the amount, if any, recovered under other proceedings. Apart from the aforesaid fact, we are of the view that mere mismatch of the figures will ipso facto not invalidate the order initiating 'Corporate Insolvency Resolution Process' under Section 7 of the 'I&B Code'. 12. The provisions of Sections 7 and 9 of the 'I&B Code' fell for consideration before the Hon'ble Supreme Court in "M/s. Innoventive Industries Ltd. Vs. ICICI Bank & Anr.─ ....