AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 154
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....a Siva Kumar, Andhra Bank, Cuffe Parade, Mumbai. 2. The Respondent Corporate Debtor (CD) Company, namely Krishna Knitwear Technology Limited was incorporated on 23-8-1982 with CIN: U17119DN1982PLC000092. 3. The nominal share capital of the Respondent (CD) Company is Rs. 500 Crores and the paid-up capital of the company is Rs. 345,11,26,000.00. The Registered Office of the Corporate Debtor Company is situated at: Krishna Nagar, Samarvani, Silvasa (U.T.) It is gathered from the records that the company has its spinning unit engaged in manufacturing of cotton yarn from raw cotton. 4. It is submitted by the Petitioner that the Respondent Company availed financial assistance from various banks and financial institutions since 2001 by way of Term Loan, Cash Credit and Working Capital Demand Loan. It is submitted that the loans were secured by hypothecation of movables and mortgage of immovable properties besides the personal guarantees of the Promoters and Directors and mortgage of their properties. 5. It is further submitted that the Working Capital Consortium was formed, led by the Applicant Bank. Pursuant to the sanction of the credit facilities, the Respondent executed various lo....
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....nfrastructure Pvt. Ltd., & (iii) KSL & Industries Ltd, Particulars of securities held by the Applicant Bank with respect to facilities granted to the Corporate Debtor are mentioned in detail at Part V of the application at pages no. 8 to 12 of the paper book. 9. The particulars of various securities held by the Applicant Bank with respect to the facilities provided by it to the Corporate Debtor is as under: For Working Capital - Primary Security - First pari passu charge with other lenders of Working Capital by way of hypothecation of raw materials, stock-in-process, finished goods, goods and spares and book debts along with other current assets. Collateral Security - Second pari passu charge over the entire fixed assets of the company with other Lender Banks. Gross Block of Fixed Assets is Rs. 1488.28 crores and Net Block of Fixed Assets is Rs. 193.07 crores. (Including Capital Work-in-Progess) as per ABS 31-3-2017. For FITL - Primary Security - First pari passu charge on fixed assets of the Company with other Lender Banks and institutions. Collateral Security - Second pari passu charge on current assets of the Company with other Lender Banks and institutions. 10. The Corpor....
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....ention Agreement dated 29-12-2012(Pages No. 423 to 505 of paper book); vi. Copy of 6th Supplemental Working Capital Consortium Agreement dated 20-4-2013(Pages No. 506 to 539 of paper book); vii. Copy of Term Loan Consortium Agreement dated 20-4-2013(Pages No. 540 to 620 of paper book); viii. Copy of 1st Supplemental Term Loan Consortium Agreement dated 20-4-2013(Pages No. 621 to 684 of paper book); ix. Copy of 6th Supplemental Joint Deed of Hypothecation dated 20-4-2013(Pages No. 685 to 706 of paper book); x. Copy of Joint Deed of Hypothecation dated 20-4-2013(Pages No. 707 to 736 of paper book); xi. Copy of 1st Supplemental Joint Deed of Hypothecation dated 20-4-2013(Pages No. 737 to 748 of paper book); xii. Copy of Deed of Guarantee executed dated 20-4-2013 for working capital facilities (Pages No. 749 to 766 of paper book); xiii. Copy of Deed of Guarantee executed dated 20-4-2013 for FITL(WC) facilities (Pages No. 767 to 784 of paper book); xiv. Copy of Deed of Guarantee dated 20-4-2013 for term loan consortium facility (Pages No. 785 to 804 of paper book); xv. Copy of Omnibus Counter Guarantee dated 20-4-2013(Pages No. 805 to 818 of paper book); xvi. Copy ....
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....at the Respondent has filed a counter claim for Rs. 1687.33 Cr. against the O.A. No. 150 of 2012 filed by the Applicant before the DRT, Ahmedabad. 16.2 It is pleaded that the account of the Respondent was not NPA as on 29-6-2012 and the Applicant has classified the account as NPA without following the guidelines of RBI. It is submitted that in case the account of the Respondent would have become NPA, the Applicant would have not considered the restructuring of credit facilities in December' 2012. The Respondent has annexed the copy of CDR EG sanctioned on 24-12-2012 as Annexure R-3. 16.3 It is submitted that the Applicant has claimed to have sanctioned credit facilities since the year 2001, however has enclosed calculation sheets with effect from 1-1-2012. It is pleaded that the Applicant ought to have produced the statement of account since inception of the loan transactions. Hence, the Application is not maintainable since it does not crystallise the amount due and payable by the Respondent. It is submitted that Applicant raised claim towards alleged credit facilities such as OCC, OCC adhoc and FITL, however no separate statements of accounts in respect of the purported cre....
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....t due and payable a on 31-12-2014 is Rs. 109,46,33,485.54 Ps whereas as per Exhibit D in the instant application, the amount shown as due and payable is Rs. 149,79,67,591.63 Ps on the same date. Hence, it is submitted that the amount claimed in the instant application is false and frivolous. 16.8 It is submitted that several resolution plans were submitted to the Applicant as well as in the Joint Lenders Meetings along with proposals from prospective buyers/entrepreneurs, who were interested to acquire the secured assets but the Applicant did not consent any of the proposals on time, as a result, no amicable resolution could be reached. 16.9 It is submitted that the Applicant has relied upon pledge of certain shares of M/s.Upasana Silk Mills Pvt. Ltd., which were pledged in terms of sanction of CDR EG and upon consideration and continuance of restructuring facility under CDR mechanism. However, it is submitted that the Applicant has treated the restructuring of the credit facilities of Respondent as failed and hence, the Applicant is estopped to enforce the shares purportedly pledged by M/s.Upasana Silk Mills Pvt. Ltd. and ought to have returned the said shares to the pledger con....
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....be deferred." The Respondent (Applicant Bank herein) filed its reply against the said IA on 22-7-2019, submitting inter alia that the Corporate Debtor availed various financial assistance from the Respondent (Applicant Bank herein) and consortium member banks and failed to service the debt in time. Further, inspite of the fact that the Applicant bank herein and other lenders sanctioned the restructuring package, there was no substantial improvement in the operation of the company. Subsequently, the OTS proposals submitted by the Corporate Debtor were not acceptable to the Consortium Lenders and hence the Applicant Bank herein and other lenders decided to initiate action under IBC, 2016 by filing the application under section 7 of the IBC, 2016. It is submitted that the Applicant bank herein is entitled under the law to initiate action under the SARFAESI Act against the secured assets and thus took the symbolic possession of the properties. It is submitted that once the application is admitted and CIRP process is initiated, all the actions under the SARFAESI Act and DRT Act shall stand abated. It is submitted that the Corporate Debtor had already admitted its loan, liability....
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....istered by the CD with the ROC in favour of the Petitioner Bank on 1-7-2014 & 20-4-2013 for Rs. 109.00 Crores and Rs. 734.59 Crores respectively vide charge ID No. 10284656 and 80011094. 24. The CD has defaulted in making repayment of loan/credit facilities to the Petitioner Bank and the date of default is 29-6-2012. The statement of accounts as on 21st May 2018 along with the Banker's Book Evidence Certificate annexed with a fresh affidavit filed by the Applicant Bank on 6-9-2019, which confirms the amount in default is Rs. 193,52,41,386.02Ps as on 21-5-2018. Further, the audited balance sheet for the year 2016-17 and the CIBIL Reports submitted by the Applicant Bank confirm the existence of liability to the Financial Creditor and default committed by the Corporate Debtor. 25. The Petitioner Bank has filed the petition within the period of limitation, as the last payment into the account has come on 25-9-2017 and the application has been filed on 21-5-2018. The date of mortgage of the property is 10-9-2014, SARFAESI proceeding initiated on 31-1-2015, DRT proceedings started in March' 2016 and the account of the Corporate Debtor was classified as NPA on 29-6-2012. 26. I....
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....& 30, this Adjudicating Authority is satisfied that,- (a) The Corporate Debtor availed the loan/credit facilities from the Financial Creditor Bank(Andhra Bank). (b) Existence of debt is above Rs. One Lac; (c) Debt is due; (d) Default has occurred on 29-6-2012; (e) Petition had been filed within the limitation period, as the existence of debt due is found in Balance Sheet of the Corporate Debtor as on 31-3-2017 and the last payment into the account has come on 25-9-2017, whereas this petition under section 7 has been filed on 21-5-2018; (f) Copy of the Application filed before the Tribunal has been sent to the Corporate Debtor and the application filed by the Petitioner Bank under section 7 of IBC is found to be complete for the purpose of initiation of Corporate Insolvency Resolution Process against the Corporate Debtor. Hence, the present IB Petition is admitted with the following Directions/observations. The date of admission of this petition is 13-1-2020. 32. As per the provisions of sections 13 and 14 of the IB. Code on the date of commencement of insolvency, this Adjudicating Authority declares moratorium with effect from today for prohibiting all of the following....
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....tions contemplated, inter alia, in sections 15, 17, 18, 19, 20 & 21 of the Code and transact proceedings with utmost dedication, honesty and strictly in accordance with the provisions of the 'Code', Rules and Regulations. It is further made clear that all the personnels connected with the Corporate Debtor, its promoters or any other persons associated with the Management of the Corporate Debtor are under legal obligation under section 19 of the Code to extend every assistance and co-operation to the Interim Resolution Professional as maybe required by him in managing the day-to-day affairs of the 'Corporate Debtor'. In case there is any violation, the Interim Resolution Professional would be at liberty to make appropriate application to this Tribunal with a prayer for passing an appropriate order. The Interim Resolution Professional shall be under duty to protect and preserve the value of the property of the 'Corporate Debtor' as a part of its obligation imposed by section 20 of the Code and perform all his functions strictly in accordance with the provisions of the Code, Rules and Regulations. 35. It is also observed that the Petitioner Bank has claimed to....