AI Drafter 
TaxTMI 
TaxTMI 
2019 (11) TMI 294
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....s an Insolvency and Bankruptcy Application filed u/s. 7 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor on the ground the Corporate Debtor defaulted in making repayment of Rs. 117,06,79,736.23 as on 28.02.2019. 2. The application discloses that this Corporate Debtor had originally availed the loan facilities on Indian Overseas Bank having granted credit facilities in the year 1992. Soon thereafter, these credit facilities were revised on 18.01.2001, sanctioning different credit facilities as reflected in the table below: Nature of facility Limits (Rs. In Lakhs) CC (Hypn.) 70.00 IDDBP/IDUBD/Supply Bills on 90 days DA terms Sub-Limit C....
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.... 4.00 Total 20.00 Apart from this, the Bank, on 28.03.2014, sanctioned ad hoc credit facilities as mentioned below: Nature of facility Limits (Rs. In Lakhs) Ad hoc Ccash Credit against Hypothecation of inventory and receivables 225.00 Ad hoc IDDBP/DUBD/Supply Bills on 90 days usance 175.00 Ad hoc Secured Packing Credit against LC for 90 days 25.00 Ad hoc FDDB/FDUBD under LC with usance up to 90 days 75.00 Total 500.00 4. In consideration of the facilities availed by the Corporate Debtor created charge over piece and parcel of site and building thereon situated at Venugopal Pillai Street, Chidambaram Town, Chidambaram Taluk, Cuddalore District bearing Door No. 11, Patta No.53 comprised in Mun....
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....ment Deed, dated 24.03.2017, and in pursuant thereto, the Original Lender has given its consent on 24.03.2017, under Section 5(5) of SARFAESI Act in favour of Financial Creditor for filing the application seeking substitution at the place of Original Lender in all the pending legal proceedings arising out of the financial assets and taking all incidental steps for the same. 6. To prove that the said financial assets were assigned to this Financial Creditor, it has filed Assignment Deed, dated 24.03.2017, and also consent letter, dated 24.03.2017. Apart from the revival letters and availing of loans at various points of time, the Corporate Debtor on 02.06.2017, acknowledged the debt owed to pay to this Financial Creditor. Subsequent there....
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....his, it is also reflected that this Corporate Debtor provided security of its various lands towards the loan availed by the Corporate Debtor from the Original Lender i.e. Indian Overseas Bank. 9. As against the material the petitioner placed before this Bench, the Corporate Debtor counsel has admitted the claim of the Applicant against the Corporate Debtor. 10. After having gone through the documentation reflecting the Corporate Debtor availing the credit facilities in respect of loan amounts from the Original Lender, thereafter the Bank declaring this loan as NPA on 14.09.2014, since there being regular correspondence between the Corporate Debtor and the Original Lender reflecting acknowledgement of this debt from time to time, this ....
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....d or interrupted during moratorium period. III. That the provisions of sub-section (1) of Section 14 of IBC shall not apply to such transactions as maybe notified by the Central Government in consultation with any financial sector regulator. IV. That the order of moratorium shall have effect from 28.08.2019, till the completion of the corporate insolvency resolution process or until this Bench approves the resolution plan under sub-section (1) of section 31 of IBC or passes an order for liquidation of corporate debtor under section 33 of IBC, as the case maybe. V. That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under section 13 of IBC. VI.....