2019 (7) TMI 577

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....led under Section 7 of Insolvency and Bankruptcy Code, 2016, R/w Rule 4 of Insolvency & Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, seeking admission of the Petition, initiation of Corporate Insolvency Resolution Process, granting moratorium and appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon. 2. The averments of the petition filed by the Petitioner/ Financial Creditor in brief: a. The Financial Creditor is Government of India Undertaking. The Corporate Debtor is a Private Limited Company engaged in the business of Power Generation. b. The Corporate Debtor vide its letter dated 21-08-2018 requested the Financial Creditor for sanction of certain credit....

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.... shares by M/S Lanco Power Ltd 7. 06.11.15 Agreement of pledge executed by M/S Lanco Power Limited in favour of Pledgee i.e Andhra Bank 8. 06.11.15 Power of Attorney for execution pledging of shares 9. 31.01.05 Memorandum of articles of association of M/S Lanco Power Limited 10. 06.11.15 Deed of pledge executed by M/S Lanco Thermal power Limited in favour of Pledgee i.e Andhra Bank 11. 21.10.15 Resolution executed by M/S Lanco Amarkantak Power limited in respect of financial assistance sanctioned to M/S Lanco Thermal Power Limited 12. 03.11.15 General Form of Guarantee executed by M/S LancoAmarkantak Power limited 13. 03.11.15 RF 255-B, executed by M/S Lanco Amarkantak Power lim....

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.... of Rs. 100 Cr to the Corporate Debtor to meet General Corporate purpose vide sanction letter dated October 1, 2015 with a stipulation to repay the same in 30 structured quarterly instalments beginning from the date of repayment schedule). The released loan in November 2015 was utilized in meeting the existing outstanding liability of the company which in turn enabled the Corporate Debtor to fulfil its repayment obligations. d. It is averred that the loan amount was sought by the Corporate Debtor based on its three (3)major assets under construction, i.e., LancoAmarkantak Power Limited (Unit 3 & 4) 1320 MW, Lanco Babandh Power Limited 1320 MW and Lanco Vidarbha Power Limited 1320 MW, which then were at different stages of implement....

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.... Debtor. In order to prove its claim the Financial Creditor has relied on Annexure-1 to Annexure -30 filed along with the Petition. 6. The Corporate Debtor filed an Affidavit stating that the Corporate Debtor is not a thermal power producing company but is running two small hydro projects (5MW each). 7. The Financial Creditor has sanctioned a Corporate Loan of Rs. 100 Crores vide sanction letter dated 01-10-2015. This fact is admitted by the corporate debtor. Further corporate debtor admitted default in paying instalments. The notice was also issued to the corporate debtor to make payments. However, corporate debtor failed to make payments. Corporate debtor committed default of Rs. 129.99 Crores Plus interest. 8. Corporate debtor c....

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....st proposed IRP. The financial creditor has fulfilled all the requirements as contemplated under Code. The petition is in order. Therefore the petition is fit for admission. 12. The Financial creditor has suggested the name of IRP who has given consent in FORM 2 and there is no disciplinary proceedings pending against present IRP. 13. Hence, the Adjudicating Authority admits this Petition under Section 7 of IBC, 2016, declaring moratorium for the purposes referred to in Section 14 of the Code, with following directions:- (a) The Bench hereby prohibits 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, T....