TaxTMI 
TaxTMI 
2019 (9) TMI 932
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....gainst the Corporate Debtor (Debtor) for initiation of Corporate Insolvency Resolution Process against the Debtor on the ground that the Debtor defaulted in repaying Rs. 175,76,35,263 as on November 30th 2018. 2. It is the case of the Creditor Bank that it has issued sanction letter dated 13.01.2007 to the Debtor agreeing to grant sanction limit for an amount of Rs. 36.94 Crores, in pursuance thereof, the Debtor on 16.03.2007 executed a Loan Agreement in favour of the Financial Creditor for hypothecation of goods, right to charge interest at such rates as may be determined by the Bank and other conditions put forth by the Bank as stated in the agreement of Hypothecation of goods and assets. Thereafter, on 27.10.2008, the Creditor Bank enha....
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....repay the due outstanding of Rs. 175,76,35,263 as on November 30,2018, the Creditor Bank filed this case for initiation of Corporate Insolvency Resolution Process against the Debtor. 3. As against this claim petition filed by the Creditor Bank, the Corporate Debtor raised objections against the relief seeking initiation of Corporate Insolvency Resolution Process, one out of those grounds is, since the Creditor Bank issued Section 13(2) of SARFAESI Act on 10.07.2013 and thereafter Authorized Officer sent another letter to the Debtors of the Corporate Debtor on 18.10.2013 u/s 13(4)(d) of SARFAESI Act asking them to remit all the dues to the Creditor Bank instead of remitting them to the Corporate Debtor led the Debtors not to pay dues to the....
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....rores. 6. As to remaining five properties mortgaged to the Creditor Bank as first charge, the Creditor Bank in its own OTS obligated the corporate debtor to obtain NOC from Bank of Baroda and Edelweiss ARC because these properties are under pari-passu charge with Bank of Baroda and Bank of India/EARC. The main condition laid in the OTS is that the Corporate Debtor is put to obligation not only to make payments against first charge but also to obtain NOC from Bank of Baroda and Bank of India/EARC for the release of mortgage and to hand over their original documents. Since OTS has not been sanctioned by Bank of Baroda, it has become impossible for the Corporate Debtor to get an NOC from the respective bank as sought by the Creditor Bank. As ....
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....s. 5.425 Crores by the date aforementioned. As per the understanding in the OTS, the Creditor Bank released the properties from the mortgage as mentioned in the Annexure to the sanction letter against payment of Rs. 5.15 Crores. In the chart below it has been reflected, as to how much payment and by what date the corporate debtor ought to pay and how much he paid and by what time he paid in terms of the OTS. The payment schedule is as follows: Instalment No. Payment Time line Cumulative Due from the company within time line Cumulative Payment made by company within time line TOKEN AMOUNT Rs. 1.00 cr on handing over of sanction letter 06.10.2016 1.00 cr 1.02 cr 1 Rs. 6.00 cr within 3 months from the date of sanction letter....
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....healthy and in fact, it was a company continuing under a reference before BIFR until before IBC has come into force. That apart, the Creditor Bank already filed OS 605 of 2014 on 23.06.2014 but those proceedings have not been fructified as this Corporate Debtor is hell bent in prolonging the proceedings by filing civil suits with respect to the mortgages created in favour of the banks. 11. On perusal of the records and hearing the submissions of both the parties, it is apparent on record that debt is in existence, thereafter the Corporate Debtor failed to repay the loan amount by which the account has become NPA. It was referred to BIFR to declare it as sick company, in spite of all these things, the Bank sanctioned OTS scheme for settling....
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....ollows: 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 debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d)....