2017 (8) TMI 1543

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....lf. 2. Facts in brief are that the Applicant Debtor had availed Credit Facility from Bank of Baroda vide Sanction dated 31.07.2009 for a period of 12 months. The nature of the facility and the sanctioned limit as on 31st July 2009 was as under:- 3. The Petitioner has submitted Form No. 6 as prescribed under the Code, according to which, the total debt raised from Bank of Baroda was Rs. 4,85,14,000/-. The purpose for the Loan was Renovation of Office Premises and Purchase of Machinery. On account of non-payment the impugned Loan Facility was declared N.P.A. on 09.02.2012. The Bank of Baroda has taken the security in the following manner. 4. On account of declaration of N.P.A., Bank of Baroda has issued a Notice for "Symbolic Possession" o....

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.... barring Bank of Baroda there is no other Financial Loan Liability. 7. As far as the financial position of the debtor is concerned the same can be analysed from the Profit and Loss Account and the Balance Sheets along with the Schedule annexed to the Petition so as to demonstrate that if time be granted then the finances can be restructured. We have examined all those Statement of Accounts and noticed as under :- (a) The Revenue generation for the Financial Year as on 31st March 2015 was amounting to Rs. 3,63,57,681/- and for 31st March 2016 it was Rs. 2,83,53,942/-. As per the Provisional Balance Sheet drawn as on 31st March 2017 the receipt of Revenue generation was expected to be Rs. 3,38,81,969/-. As per the above information pertain....

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....ssets" the Company has also Tangible Assets, one of them i.e. Factory land and building, which has been taken over by the Bank. Although the Book Value is not substantial but as per the comparative chart the Fair Market Value is attractive so as to cover up the Bank liability. 8. Inter alia, in the light of the above discussion we are of the conscientious view that there are genuine reasons, due to which this Petition deserves "Admission". The reasons, in short, are that there is scope of higher margin of profit specially when turnover is reasonably high touching the figure of almost Rs. 3.39 Crores as per the Provisional PNL Account as on 31st March 2017. The other reason for "Admission" can be said to be sufficient debt receivables, plus....

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....nd preserve the value of the property of the Corporate Debtor. He shall also perform due diligence in managing the operations of this going concern. 10. Once the Petition is admitted the clauses of "Moratorium" as prescribed under section 14 shall commence immediately thereafter. The commencement of "Moratorium" shall protect the assets of the Debtor Company as it is hereby pronounced about the prohibition in transferring, encumbering or disposing of any of its assets. The "Moratorium" shall also rule out simultaneous multiple legal proceedings before different legal forum. This Order shall, inter alia, prohibit the institution or continuation of any legal proceedings against this Corporate Debtor. However, it is hereby provided that where....