2019 (8) TMI 39

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....ments made in Form-1 of the Petition are:- (1) M/s SEW Infrastructure Limited (Financial Creditor) and M/s Amrit Jal Ventures Private Limited (Corporate Debtor) entered into an Inter-Corporate Deposit (ICD) Agreement dated 30.06.2011 and Corporate Debtor borrowed a sum of Rs. 4,00,00,000/- (Four Crores only) from the Financial Creditor with an undertaking that the money shall be utilized for the purpose of the business of Corporate Debtor Company and will be repaid in 12 months along with interest at 24% per annum and with a provision that the said ICD amount will carry a penal interest of 2% from the date on which it becomes due. (2) It is averred that Corporate Debtor failed to repay the loan amount and requested Financial Creditor for extension of the ICD up to 31.03.2015 as per the terms and conditions of ICD agreement dated 30.06.2011. (3) It is averred that the amount claimed to be in default is Rs. 7,88,15,181/- including interest payable up to 21.08.2017 and date of default is 30.09.2014 i.e. the date on which the Corporate Debtor failed to pay the 1st instalment as per ICD Agreement dated 13.12.2013. (4) When the Corporate Debtor failed ....

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.... takes time to earn returns and submits that Corporate Debtor is fulfilling all its commitments towards the Financial Creditor and as such there is some mismatch of the amounts paid as per the records of the Financial Creditor and the Corporate Debtor. Further Corporate Debtor submits that there is no breach or default in the payments of any sum owed to the Financial Creditor under the ICD Agreement dated 13.12.2013. (7) It is averred that the amount borrowed by the Corporate Debtor from the Financial Creditor is for long term project which will run for more than 25 years and there will be assured returns and amounts allegedly due and payable by the Financial Creditor is required to be reconciled. (8) Corporate Debtor avers that there is no letter or document produced by the Financial Creditor to show that there is any admitted liability from the Corporate Debtor. Further, Corporate Debtor contends that there is an arbitration clause in the ICD agreement and that in case Financial Creditor wants to claim any extra amounts over and above what is allegedly due from the Corporate Debtor, then it has to initiate arbitration proceedings as provided under the Agreement.....

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.... to the corporate debtor directing corporate debtor to pay the amount as per the terms of Inter Corporate Deposit Agreement. This is shown as Exhibit P.10 date 01.10.2014. Again one more letter was addressed to corporate debtor by Financial Creditor dated 23.05.2017. 10. The Financial Creditor through this letter informed the corporate debtor that they are deputing M.Srinivasa Rao, for reconciliation of accounts since corporate debtor wanted reconciliation. The Financial Creditor stated in the letter that alleged mismatch of accounts is nothing but created allegation to drag on the matter. However the Financial Creditor is ready for reconciliation and deputed its employee Mr. Srinivasa Rao. This letter is shown as Exhibit P.11. 11. Financial Creditor again relied on one more letter marked as Exhibit P.12 dated 06.06.2017. In this letter corporate debtor informed to Mr. Mahendra Kumar Agarwal, that corporate debtor had not taken any steps for alleged reconciliation even though Financial Creditor deputed a person. A copy of this letter was also marked to corporate debtor. 12. The Financial Creditor also filed extract of books of account for the year 2011-12 shown as Exhibit ....

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....U. 17. Financial Creditor relied on letter from M/s. Intercontinental Infrastructure Limited which is party to the MOU stating that corporate debtor has not paid any amount to this company and if payment is not made within 7 days by corporate debtor the MOU stands cancelled. No amount was paid by corporate debtor to Intercontinental Infrastructure Limited in terms of MOU. 18. The said MOU is deemed to have been cancelled. Corporate debtor cannot take any protection under this MOU which was deemed to have been cancelled due to its own default. Mere issue of notice for arbitration which is not constituted then corporate debtor can't prevent Financial Creditor for initiating CIRP. 19. The Financial Creditor has suggested the name of IRP who has filed consent in Form 2 and there are no disciplinary proceedings pending against proposed IRP. 20. The Financial Creditor is able to establish debt which was due and default by corporate debtor which is Rs. 7, 88,15,181/- which includes interest. 21. 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 dire....