TaxTMI 
TaxTMI 
2019 (8) TMI 1481
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....yoti Mukhopadhaya, J. This appeal has been preferred by Director of 'M/s. L&T Halol Shamlaji Tollway Limited'- ('Corporate Debtor') against the order dated 19th July, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Chennai Bench, admitting the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short) preferred by 'M/s. Oriental Bank of Commerce'- ('Financial Creditor'). 2. The main plea taken by the Appellant is that there was no default on the part of the 'Corporate Debtor' and therefore, the application under Section 7 was not maintainable. 3. Learned counsel appearing on behalf of the Appellant submitted that a 'Master Restructuring Agreement' was reached on 1....
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....ship Services Limited' (as 'Security Trustee') on 28th August, 2009. 7. Pursuant to the said 'Common Loan Agreement', the amount was disbursed in different phases which was subsequently amended vide 'Master Restructuring Agreement' reached on 14th February, 2017 between 'M/s. L&T Halol Shamlaji Tollway Limited'- ('Corporate Debtor') and the 'Allahabad Bank' (as "Lenders' Agent") and 'IDBI Trusteeship Services Limited' (as "Security Trustee"). 8. It was submitted that in terms of the said agreement, no default has been committed by the 'Corporate Debtor' as in terms of 'Master Restructuring Agreement', the amount is repayable on subsequent dates. 9. The aforesaid plea was also taken by the 'Corporate Debtor' before the Adjudicating ....
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....on of the Lenders, is capable of being remedied, the same is not remedied within a period of 90 (Ninety) calendar days from the date of a notice being received from the Lenders in this regard. (c) Concessions In the event that the concessions sought in terms of the letter dated November 8, 2016 addressed by the Lenders' Agent to the GSRDC are not provided within 90 (Ninety) calendar days of the Effective Date, in a form and manner acceptable to the Lenders." 11. 'Consequences of Event of Default' has also been stipulated in clause 8.1 of the 'Master Restructuring Agreement' as quoted below: "8. CONSEQUENCES OF EVENT OF DEFAULT 8.1 Upon occurrence of any Event of Default, (such event being h....
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....xercise any other rights that the Lenders may have under Applicable Law, any other law for the time being in force, the Facility Documents and/or the Project Documents." 12. The other facts brought to the notice of the Adjudicating Authority has been referred to in the impugned order are as follows: "3. Besides this, lead Bank of Consortium, Allahabad Bank on 08.11.2016 wrote a letter to the Managing Director of Gujarat State Road Development Corporation Limited (GSRDCL) stating that the revival package will be based on adoption/ implementation of measures proposed by Banks and GSRDCL, which are- conversion of debt to the tune of Rs. 410 crores into equity and GSRDCL to take share of Rs. 210 Crores out of the proposed equi....
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....ents of default, it has been stated that the lenders have a right to reverse any waivers or offers or concessions that has been granted as part of this Agreement and upon such reversal, revert back to the provisions of the Existing Facility Document i.e. the document initially executed by the Corporate Debtor in favour of the Creditor as well as other banks. The Financial Creditor counsel has stated that though this Corporate Debtor servicing part of the debt, as GSRDCL has not taken equity share of Rs. 210 crores out of Rs. 410 crores debt converted into equity by this Restructuring Agreement within 90 days from the effective date, this Financial Creditor has every right to reverse the waivers and concessions that were provided under Maste....