TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 821
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....itization Reconstruction Company with the Reserve Bank of India under Section 3 of the SARFAESI Act, 2002, having its registered office at 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, having identification No. U67190MH2007PLC174287. 3. M/s. Tiger Surgical Disposable Private Limited is a company incorporated under the Companies Act, 1956 on 30th June, 2003 having identification No. U33112GJ2003PTC042558 having its registered office at 80/4, GIDC Phase - I, Vatva, Ahmedabad - 382 445. That Authorised share capital of the respondent company is Rs. 3,20,00,000.00 and paid up share capital is Rs. 3,20,00,000.00. 4. It is submitted by the applicant company that, total amount of Rs. 22,12,05,556/- (Rupees twenty-two crores twelve lakhs five thousand five hundred fifty-six only) as on 15.03.2018 is outstanding against the debts owed by the respondent company to UCO Bank which were transferred in favour of the applicant by way of a registered assignment agreement dated 26.03.2014. Details of the loan sanctioned, disbursed by the bank and outstanding thereof are placed at Annexure - 6 to the application which is reproduced hereunder: - Date of default - 31.03.201....
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....05 72-74 18 Deed of hypothecation of plant & machinery for Rs. 200 lakhs dated 03.11.2005 75-82 19 Agreement of term loan for Rs. 90 lakhs dated 12.07.2006 83-85 20 Deed of hypothecation of plant and machinery for Rs. 290 lakhs dated 12.07.2006 86-93 21 Agreement of term loan for Rs. 70 lakhs dated 22.03.2007 94-100 22 Deed of hypothecation of plant & machinery for Rs. 70 lakhs dated 22.03.2007 101-108 23 Demand promissory note for Rs. 30 lakhs dated 20.08.2007 109 24 Letter of waiver for Rs. 30 lakhs dated 20.08.2007 110 25 Letter of continuity for Rs. 30 lakhs dated 20.08.2007 111 26 Deed of hypothecation of goods for Rs. 30 lakhs dated 20.08.2007 112-119 27 Demand promissory note for Rs. 145 lakhs dated 08.11.2007 120-121 28 Letter of waiver for Rs. 145 lakhs dated 08.1.2007 122 29 Letter of continuity for Rs. 145 lakhs dated 08.11.2007 123 30 Supplemental deed of hypothecation of goods, stocks & book debts for Rs. 145 lakhs dated 08.11.2007 124-127 31 Agreement of term loan for Rs. 130 lakhs dated 08.11.2007 128-134 32 Deed of hypothecation of plant & machinery for Rs. 130 lakhs dated 8.11.2007 135-150 33 Supplemental deed of hypo....
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....atel 240-245 57 Letter of continuing guarantee dated 22.03.2007 for aggregate limits of Rs. 70 lakhs signed by Mr. Jagdishbhai Patel, Mrs. Nandiniben Patel and Mr. Karan Patel 246-249 58 Letter of continuing guarantee dated 22.03.2007 for Rs. 70 lakhs signed by Mr. Karan Patel 250-253 59 Letter of continuing guarantee dated 20.08.2007 for Rs. 30 lakhs signed by Mr. Jagdishbhai Patel and Mrs. Nandiniben Patel 254-257 60 Letter of continuing guarantee dated 8.11.2007 for Rs. 145 lakhs signed by Mr. Jagdishbhai Patel, Mrs. Nandiniben Patel and Mr. Dilipkumar Patel together with consent letter for disclosure of names 258-265 61 Letter of continuing guarantee dated 30.06.2011 for term loan limits of Rs. 8,96,52,000 lakhs signed by Mr. Jagdishbhai Patel, Mrs. Nandiniben Patel, Mr. Kiran Patel and Mr. Dilipkumar Patel 266-274 62 Memorandum of equitable mortgager of title deeds dated November 19 2005 by guarantor 275-287 63 Memorandum of equitable mortgager of title deeds dated September 20 2006 by guarantor 288-304 64 Memorandum of deposit of title deeds dated September 25, 2007 by guarantor 305-314 65 Supplemental memorandum of equitable mortgage by deposit of ....
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....mistake and continued to be negligent. (iii) On or around 23.04.2010 UCO Bank lost four cheques amounting to Rs. 2,26,396/- which were issued by various customers in favour of the respondent company and deposited with the Bank. On top of that UCO Bank unilaterally raised rate of interest from 14.5% to 18% per annum without any kind of notice, intimation and/or consent of the respondent company. 8. The respondent has further contended that vide letter dated 21.05.2010 respondent called upon UCO Bank to credit their CC account with US $ 31,204, Rs. 2,26,396/- towards the lost cheques and excess amount that debited from the respondent company's account by unilaterally increasing the interest rate. That, similar requests were made vide letters dated 23.06.2010 and 12.07.2010, however, UCO Bank did not bother to take any action. That, pending the adjudication of the securitisation application, UCO Bank has illegally assigned the debts of the respondent company to the petitioner herein vide assignment deed dated 25.03.2014. That, the respondent company is one of the largest syringe manufacturers and employs more than 100 direct and indirect employees. Findings 9. Heard the submissi....
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...., the corporate debtor acknowledged the debts. Moreover, objection raised by the corporate debtor that the petitioner cannot be permitted to pursue two parallel proceedings is unfounded. The pendency of proceedings before any other fora as mentioned in the Code much less before the Arbitrator would not cause any impediment with regard to initiation of corporate insolvency resolution process because under Section 7 of the Code pendency of such proceedings is no bar to the admission of the petition and initiation of corporate insolvency resolution process. 12. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the Corporate Debtor committed default in paying the financial debt to the Applicant. 13. To decide the issue, it is desirable to refer to the Judgment delivered by the Hon'ble Supreme Court, in the matter between Innoventive Industries Ltd. v. ICICI Bank & Anr., In Civil Appeal Nos. 8337-8338 of 2017, in Para No. 30 has clearly held as follows; "30. On the other hand, as we have seen, in the case of a corporate debtor who commits a default of a financial debt, the adjudicating authority has merely to see the re....