TaxTMI 
TaxTMI 
2019 (8) TMI 217
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.... ORDER Per S. Vijayaraghavan, Member (Technical) The Applicant 'State Bank of India' (in short, "Financial Creditor") has furnished Form No. 1 under Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (Rules) in the capacity of "Financial Creditor" on 17.01.2019 by invoking the provisions of Section 7 of the Insolvency and Bankruptcy Code (Code) against M/s. Bhatia Coke & Energy Limited ("Corporate Debtor") to initiate Corporate Insolvency Resolution Process (CIRP) on the ground that as on 31.12.2018, the Corporate Debtor has defaulted in making a total repayment of Rs. 125,89,60,431.52 (Rupees One Hundred and Twenty Five Crores Eighty Nine Lakhs Sixty Thousand Four Hundred and Thirty ....
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....me-II at page 253). The loans disbursed by the Financial Creditor is primarily secured by land and building, plant and machinery, equitable mortgage of 77 different properties on pari passu basis, hypothecation of current assets of the company and personal guarantee/guarantors for the Corporate Debtor. 6. To support their claim, the Creditor Banks have filed dates and events disclosing existence of debt and occurrence of default, which are as follows: S. No. DATES EVENTS 1. 29.07.2009 Loan Sanction letter by State Bank of India 2. 03.09.2009 Loan Sanction letter by State Bank of Mysore 3. 16.09.2009 Deed of Guarantee Agreement and Deed of Hypothecation (Vol.2, P.230) 4. 17.03.2011 Joint Workin....
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....onsortium Agreement dated 17.03.2011, the Corporate Debtor availed Joint Working Loan of Rs. 97 crores (Rs. 51 crores from State Bank of India; Rs. 31 crores from State Bank of Mysore and Rs. 15 crores from Punjab National Bank). It is further submitted that a revival letter dated 25th August 2016 was executed by the Corporate Debtor and all Guarantors involved for the continuation of acceptance of the conditions given in the loan facility. The word appearing therein is: "I/We acknowledge for the purpose of section 18 of the Limitation Act, 1963 and any like limitation law in order to preclude any question of Limitation Law, that I/we am/are liable to you for the payment of all outstanding with interest, cost, charges and expenses ....
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.... its argument, the Corporate Debtor relied upon the case in between Dharani Sugars and Chemicals Ltd.-vs.- RBI 2019 SCC Online SC 460, in which the Hon'ble Supreme Court has quashed the RBI Circular dated 12.02.2018 which had mandated Banks to necessarily file Applications under the Act for recovery of stressed assets. The present proceedings has been initiated against the Corporate Debtor, being a power-generating company, in the aftermath of the above circular and hence has to be quashed as being non est as held by the Hon'ble Apex Court. 8.4 The Corporate Debtor counsel stated that they had received a copy of impugned application only on 02.04.2019. Aggrieved by the filing of the above application, a Writ Petition No.11082/201....
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....ilities granted by the bank to the borrower, the borrower shall pay to the bank forthwith on demand by the bank the balance or balances then outstanding and owing to the bank together with interest costs, charges and expenses due in respect thereof. Therefore, as per the terms of agreement, the Financial Creditor can ask the outstanding dues at any time and Corporate Debtor is bound to repay entire sum forthwith. Due to the default committed by the Corporate Debtor in servicing their repayment or the guarantees, a recall notice has been issued to the Corporate Debtor on 11.08.2017 calling for a settlement of entire dues within a period of 15 days. 10. On looking at the submissions of either side, it has been proved that the Financial Cre....
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....the IRP is directed to take charge of the Respondent/Corporate Debtor's management immediately. He is also directed to cause public announcement as prescribed under Section 15 of the I&B Code, 2016 within three days from the date the copy of this order is received, and call for submissions of claim in the manner as prescribed.- I. That Moratorium is hereby declared prohibiting all of the following actions, namely, a) 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, tribunal, arbitration panel or other authority; b) transferring, encumbering, alienating or disposing of by the corporate ....