TaxTMI 
TaxTMI 
TaxTMI 
2019 (6) TMI 1463
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....d by the Petitioner/ Financial Creditor in brief : a) It is averred that the Financial Creditor sanctioned Cash Credit/ Working Capital Demand Loan/ Short Term Loan limit of Rs. 30 crore and Letter of Credit/ Bank Guarantee limit of Rs. 20 crore, aggregating to Rs. 50 crore to the Corporate Debtor, vide sanction letter dated 19.06.2008. b) It is averred at the request of the Corporate Debtor, the Financial Creditor enhanced the above Cash Credit/ Working Capital Demand Loan/ Short Term Loan limit to Rs. 40 crore and Letter of Credit/ Bank Guarantee limit to Rs. 50 crore, aggregating to Rs. 90 crore, vide Sanction Letter dated 11.03.2009. c) It is averred that at the request of the Corporate Debtor a Consortium of lenders led by the Petitioner was formed in November 2009 and sanctioned aggregate working capital facilities of Rs. 240 Crores and the Petitioner Bank is having share of Rs. 90 crores. Subsequently, the Financial Creditor enhanced the credit limits as under:- (1) From Rs. 90 Crores to Rs. 175 Cores vide Sanction letter dated 05.04.2019. Subsequently, on the request made by Corporate Debtor, it was reduced to Rs. 115 crores after cancellation of Bid Bond Guarantee ....
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....s maximum permissible bank finance was assessed by the Banks at Rs. 1375 crores with Rs. 500 crores as fund based limit and Rs. 875 crores as Non-Fund based limit. (d) It is the case of Corporate Debtor, based on the strength of the assessment made by the banks to enhance the working capital limits, the Corporate Debtor went ahead with increased operations which resulted in increased sales turnover of Rs. 2059.86 crores for the financial year 2011-12 as against Rs. 1670 crores. The increased operations resulted in increase of debtors and the Company could not realize from the debtors due to slow down in power industry. (e) It is averred that the following factors which were beyond the control of the corporate debtor, inter alia, contributed to the irregularity in the accounts of the Corporate Debtor with banks: i. Shortage/ Non-availability of iron ore; ii. Unrest and loss of working days due to Telangana Agitation; iii. Interruption in power supply, leading to loss of production; iv. High fluctuations in raw material prices; v. General downturn in the infrastructure sector across the country; vi. High financial costs (f) It is the case of Corporate Debtor that th....
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.... WC limits. (m) It is averred that in the JLM held on 04.07.2016, the PIPL Holding Pte. Ltd., (Puissant) indicated that they would be partnering with SCMEC, China for acquisition of the Corporate Debtor. In the proposed arrangement, SCMEC was stated to be technical partner and Puissant would be managing partner. (n) It is averred that studies conducted by the external agencies, established the viability of the corporate debtor and supported the change of management but the Banks failed to take a decision on the proposal for change of management under the aegis of SDR scheme. 4. The brief averments made in the Rejoinder are as follows: a) It is averred that Mr. N. Venkateswaran, Deputy General Manager of the Financial Creditor, is duly authorized to file Applications and other documents before Adjudicating Authorities and same was approved by the Board of IDBI Bank Limited. b) It is averred that the Corporate Debtor Acknowledged the Debt on April 1, 2018. An unambiguous and unqualified Acknowledgement of Debt furnished by the Corporate Debtor in writing extends the period of limitation with regards to Section 18 of the Limitation Act. c) It is averred that the Corporate D....
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....mitation. The present petition is within the period of limitation. As such the Financial Creditor can maintain this Petition. 9. The second objection taken by the Corporate Debtor that the petition is filed without any valid authority. The Petition is filed on behalf of Financial Creditor by N.Venkateswaran, Deputy Manager, IDBI Bank Limited. The Counsel filed a memo by enclosing a copy of authorization letter and same was taken on record by order dated 07.05.2019 showing that Shri N.Venkateswaran. Deputy Manager, IDBI Bank Limited is authorized to file the petition. I have seen the Authorization letter issued by the Competent Authority. The petition is filed with valid authority. 10. It is an admitted fact that the Corporate Debtor availed loans from the Financial Creditor. The Contention of the Corporate Debtor that the Corporate Debt Restructuring Scheme sanctioned by the Financial Creditor was not implemented by the Financial Creditor in true letter and spirt owing to which the Corporate Debtor suffered huge losses and cash flows of the Company got decreased. But since the corporate debtor did not comply with the essential terms and conditions of the sanctioned package approv....