TaxTMI 
TaxTMI 
TaxTMI 
2019 (1) TMI 1767
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....e Debtor') on the ground, that the Corporate Debtor committed default in repayment of loan facilities granted to the Corporate Debtor to the extent of Rs. 6,38,78,416.75/- including interest of Rs. 2,07,95,568/-, under Section 7 of Insolvency and Bankruptcy Code, 2016 (hereafter called the 'Code') read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. The Petition reveals that the following credit facilities were sanctioned on 25.02.2013 to the Corporate Debtor by SVC Bank consortium wherein the Petitioner bank is the consortium member: Sr. No. Facility By TJSB (Petitioner Bank) By SVC Bank 1 CC Limit 60,00,000/- 3,90,00,000/- 2 OBD Limit -- 1,00,00,000/- 3 Term Loan 1....
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.... Corporate Debtor in the reply to the Petition raised the following contentions; a. It is submitted that a Corporate Debtor is a medium enterprise as defined under the Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act'). b. The declaration of the account of the Corporate Debtor as Non Performing Asset ('NPA') w.e.f. 30.06.2015 is illegal, void and no-nest as the same is in contravention of Regulations and Circulars issued by the Government, Reserve Bank of India, etc. c. The claim of Rs. 6,38,78,417/- as claimed in the Petition is not due and payable by the Corporate Debtor. d. The Corporate Debtor being a medium enterprise is statutorily recognised as extremely important for the national economy and certain righ....
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....taken into account while considering the Petition for admission under section 7 of the code, in view of the decision of the Hon'ble Supreme Court of India in the case "Innoventive Industries Ltd. Vs. ICICI Bank and Ors., - (2018) 1 SCC 407" wherein it was observed as below: "28. When it comes to a financial creditor triggering the process, Section 7 becomes relevant. Under the Explanation to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor - it need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under sub-section (1) in such form and manner as is prescribed, which takes us to the Insolvency and Bankruptcy (Application ....
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....ify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be." 7. The Corporate Debtor further contended that, the claim of the Petitioner is barred under Article 137 of the Limitation Act and to support the contention the Ld. Counsel for the Corporate Debtor relied on the decision of the Hon'ble Supreme Court in "B. K. Educational Services Pvt. Ltd. vs Parag Gupta & Associates (2018 SCC OnLine SC 1921)". It is submitted that, the date of alleged default was on 30.06.2015 i.e. the date on which the acco....
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....ition deserves to be admitted. 10. This Adjudicating Authority, on perusal of the documents filed by the Creditor, is of the view that the Corporate Debtor defaulted in repaying the loan availed and also placed the name of the Insolvency Resolution Professional to act as Interim Resolution Professional and there being no disciplinary proceedings pending against the proposed resolution professional, therefore the Application under sub-section (2) of Section 7 is taken as complete, accordingly this Bench hereby admits this Petition prohibiting all of the following of item-I, namely: (I) (a) the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or or....