TaxTMI 
TaxTMI 
2020 (3) TMI 777
X X X X Extracts X X X X
X X X X Extracts X X X X
....xecuting the project awarded to it by National Highways Authority of India for four laning of Trichy-Dindigul Road in Tamilnadu. 3. For execution of the said project, the Corporate Debtor approached the Petitioner and other Lenders for Rupee Loan. The Corporate Debtor, on 28.03.2018, executed a common Rupee Loan Agreement with the Petitioner along with Canara Bank, Corporation Bank, India Infrastructure Finance Company Ltd. (IIFCL), Oriental Bank of Commerce and UCO Bank with Canara Bank acting as the lender's agent and security trustee. 4. The following is break-up of the Rupee Loan provided by various financial creditors including the Petitioner for an aggregate sum of Rs. 322.40 Crores: Bank of India (Petitioner)- 25 Crores Canara bank- 85.40 Crores Corporation Bank- 65 Crores IIFCL- 75 Crores Oriental bank of Commerce- 32 Crores UCO Bank- 40 Crores 5. The Petitioner enclosed the following documents in respect of the above said facilities granted by the Rupee Lenders: a. Common Loan Agreement dated 28.03.2008 b. Security Trustee Agreement dated 28.03.2008 c. Deed of Hypothecation dated ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....herein. (d) The Corporate Debtor cited the following provisions of the document in support of its contention that single member of the consortium cannot bring action against the Corporate Debtor independently: i. Clauses 7.2 and 7.3 of the Common Loan Agreement provides for the actions that may be taken by the "Rupee Lenders" (as distinct from a Rupee Lender acting singly) upon the occurrence of an Event of Default. ii. Clauses 2.4 of the Inter-Creditor Agreement provides that all the Rupee Lenders will consult with one another with respect to any action taken or proposed to be taken which could affect inter alia the Project, the Corporate Debtor or the Security. iii. Clauses 4.3 (a) of the Inter-Creditor Agreement provides that in the event of occurrence of an Event of Default, the Rupee Lenders shall have the right to proceed to enforce their claims against the Corporate Debtor but not before following the procedure prescribed in Clause 4.3(b) of the Inter-Creditor Agreement. iv. Clause 4.3(b) of the Inter-Creditor Agreement provides for the procedure to be followed by a Rupee Lender intending to take any Enforcement Action against the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o resolve the problem in accordance with the Inter-Creditor Agreement wherein the ways and means of solving the problem is carved in. (k) Since, section 12A of the Code provides for the withdrawal of the petition with the approval of 90% voting share of COC, this tribunal can seek the views of the other consortium members before admission of this petition more particularly when the other consortium members have consented to evaluate and implement the resolution plan. (l) Even the object of the Code is to bring about the resolution of stressed assets in a time bound manner for maximization of value of such assets and to promote entrepreneurship, availability of credit and to balance the interest of all stakeholders. The action of the Petitioner in filing this petition is itself contrary to the Code when the other consortium members are ready to resolve this issue by a resolution known to RBI regulations. (m) Relying on the newspaper report dated 16.09.2019 wherein the chairman of State Bank of India, Mr. Rajnish Kumar, who has cautioned the Lenders against undertaking selfish steps without coordinating with other creditors involving a common borrower, the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....required therein. Form 1 is a detailed form in 5 parts, which requires particulars of the applicant in Part I, particulars of the corporate debtor in Part II, particulars of the proposed interim resolution professional in Part III, particulars of the financial debt in Part IV and documents, records and evidence of default in Part V. Under Rule 4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or speed post to the registered office of the corporate debtor. The speed, within which the adjudicating authority is to ascertain the existence of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of the receipt of the application. It is at the stage of section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that the "debt", which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. The moment the adjudicating authority is sat....