TaxTMI 
TaxTMI 
2019 (12) TMI 1243
X X X X Extracts X X X X
X X X X Extracts X X X X
....y of the Power of Attorney dated 27.11.2017 authorizing Ms. Shilpi Garg for proceedings under the Code is filed at Annexure-A of the petition. 2. The copy of certificate of incorporation and Memorandum and Articles of Association of Corporate Debtor are stated to be filed at Annexure-D (Colly) of the petition. Corporate Debtor is stated to be incorporated on 20.07.1990 and the registered address is stated to be SCO 18 & 19, 1st Floor, Sector 9-D, Chandigarh 160017. The Master Data of the Corporate Debtor is at Page No. 52 of the petition Therefore, the jurisdiction lies with this Bench of the Tribunal. 3. It is stated in Part-IV of Form No.1 that the Corporate Debtor was granted various credit facilities by ICICI Bank Limited. The sanctioned credit facilities are as under:- (i) On 27.05.2010, the Bank and the Corporate Debtor executed a Master Facility Agreement and the Bank sanctioned the following credit facility as follows:- Nature of Credit Facility Amount (in Rs.) Export packing credit 50 crores Packing credit in foreign currency 50 crores It is stated that the repayment of the loan was either on demand or on the 180th day from t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n (Facility D) 12.47 crores Funded Interest Term Loan (Facility E) 14.09 crores Fund Based Working Capital (Facility H) 68.47 crores Non-fund based working Capital (Facility I) 9.70 crore A tabulation computation of amount in default against the corresponding date on which default occurred is at Annexure V (Colly) of the petition. Annexure-W of the petition shows that NPA date is 31.12.2016. 4. In Part-V of Form No.1, the particulars of security held are given. It is stated that the credit facilities are primarily secured by way of hypothecation and there is also collateral security by way of mortgage of lands. Copy of the report obtained from the website of Central Repository of Information on Large Credit is stated to be attached as Annexure-AA of the petition accompanied by certified under the Bankers Books Evidence 1891 are stated to be attached as Annexure-BB of the petition. It is stated that the following loan and security documents were executed by the Corporate Debtor :- Copy of the Cash Arrangement Letter dated 27.05.2010 Annexure-H, Master Facility Agreement dated 27.05.2010 Annexure-I, Credit Arrangement Letter dated 14.10.2010 Annexure-J, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Act, 2002 (SARFAESI Act, 2002) claiming the corporate debtor to be in default in repaying the outstanding dues as on 31.12.2017 and stating that the bank classified the account as NPA as per the Reserve Bank of India guidelines. The Loan Recall Notice dated 05.01.2018 and notice dated 18.01.2018, under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI 2002) are at Annexure X & Y of the petition. 10. In Part-III of Form No.1 Mr. Ravinder Agarwal, Registration No. IBBI/IPA-001/IP-P00329/2017-18/10599 has been proposed as Interim Resolution Professional (IRP). Form No.2 dated 09.02.2018 submitted by the proposed IRP is stated to be attached as Annexure-G of the petition. 11. Vide order dated 27.03.2018, notice of petition was directed to be issued to the Corporate Debtor. 12. When the matter was listed on 25.05.2018, the following order was passed :- "As per office report, reply has not been filed by the respondent-corporate debtor. Mr. R.Kartikeya, Advocate for the respondent states that Writ Petition (Civil) No.5555 of 2018 has been filed by the respondent-corporate debtor by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....omplete the pleadings in the main case, well in advance before the next date, if not completed and the matter was adjourned to 11.07.2019. 18. CA No.475/2019 was filed by the corporate debtor on 08.07.2019 submitting that against the order dated 06.02.2019 passed by the Hon'ble Delhi High Court, the corporate debtor has filed a Special Leave Petition, vide Diary No.22494 of 2019. It was prayed that the further proceedings in CP(IB) No.73/Chd/Chd/2018 be adjourned till the final disposal of the Special Leave Petition. 19. Vide order dated 11.07.2019, it was noted that CA No. 475/2019 dated 08.07.2019 is in a way another attempt to seek adjournment on the ground that the corporate debtor has filed SLP before the Hon'ble Supreme Court. Further, it was noted that the learned counsel for the petitioner strongly contested the application and submitted that there is no stay granted by any Court for proceedings under the Code. It was observed that number of opportunities were granted on earlier occasions and on the previous hearing of 26.04.2019, after seeing the conduct and delay in the proceedings, it was made clear that pleadings be completed in the main case well in advan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....because of the operation of the circular dated 12.02.2018, will be proceedings, which being faulted at the very inception are declared to be nonest. It was pleaded that the issue raised before the Hon'ble Supreme Court in the SLP filed is whether the application and the action sought under Section 7 of the Code is nonest. A request was once again made for granting opportunity for one more hearing. 23. We find that the Hon'ble Delhi High Court in LPA 579 of 2018 in the case of corporate debtor, had noted in Para No.92 thereof, that the writ petition was filed by the corporate debtor on 21.05.2018 much after the financial creditor approached the Tribunal on 09.03.2018 and so, it is clear that the writ petition was filed as an afterthought only with a view to possibly interdict the proceedings already initiated by the financial creditor. After the LPA was rejected on 06.02.2019, the Tribunal passed order dated 14.02.2019 listing the matter on 20.03.2019 and gave directions that the reply/objections with power of attorney and the board resolution be filed within two weeks with a copy advance to the counsel opposite. The time was allowed as per the request of the learned coun....
X X X X Extracts X X X X
X X X X Extracts X X X X
....6 in terms of the guidelines of the RBI. A loan recall notice is stated to be issued on 05.01.2018 and notice under Section 13(2) of SARFAESI Act, 2002 on 18.01.2018. The facts sufficiently evidence the occurrence of the default. 27. The main contention of the learned counsel for the corporate debtor is that prior to filing of the instant application by the financial creditor, the loan accounts of the corporate debtor were under the process of restructuring by joint lenders forum in terms of various guidelines dated 30.01.2014, 26.02.2014, 24.09.2015, 25.02.2016 and were also under consideration for S4S Scheme of restructuring in terms of guidelines dated 13.06.2016 and 10.10.2016 but vide Circular dated 12.02.2018, the Reserve Bank of India discontinued all the restructuring Schemes going on under various earlier guidelines and in view of this situation, all the banks including the financial creditor abandoned the ongoing restructuring process and the financial creditor filed the present petition. 28. It has been held by the Hon'ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank 143 SCL 625 (SC) that in the case of a corporate debtor, who commits a default of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appoint of IRP are given below. 35. We declare the Moratorium in terms of sub-section (1) of Section 14 of the code as under:- (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) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 36. It is further directed that the supply of essential goods or services to the corporate debtor as may be specified, shall not be terminated or suspended or interrupted during moratorium period. The provisions of Section 14(3) shall however, not apply....