AI Drafter 
TaxTMI 
TaxTMI 
2019 (11) TMI 1405
X X X X Extracts X X X X
X X X X Extracts X X X X
....;). 2. Before proceeding with this matter, it would be appropriate to make a note of background facts for the purpose of determination of this petition as stated under: I. That the Financial Creditor is a Government of India undertaking and a Financial Institution within a meaning of Section 2(72) of the Companies Act, 2013 (erstwhile Companies Act, 1956), inter alia engaged in the business of providing medium to long term financial assistance to manufacturing, services and infrastructure sectors. Il. That the total amount of Debt sanctioned to Corporate Debtor is Rs. 60,00,00,00/-whereas the total disbursed amount is Rs. 9,90,OO,OOO/- and the total amount claimed to be in default is Rs. 16,63,57,074/- and the date of default was 15.10.2013. III. List of documents placed on record in order to prove the existence of Financial Debt, the amount and date of default:- • Undertaking to execute sponsor support undertaking dated 26.02.2009 by IDEC. • Sponsor support agreement dated 27.02.2009 executed by the Corporate Debtor. • Lenders Agent Appointment Agreement dated 27.02.2009. • Deed of Hypothecation date....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ho signed in Form No.2 has been not authorized by the Financial Creditor, hence the Form No.2 filed by the Financial Creditor cannot be taken on record. iv. It is further submitted that, the Financial Creditor has filed certain documents i.e. confirmation of outstanding liability of Corporate Debtor to the Financial Creditor. However, the Corporate Debtor has not issued any balance confirmation certificate to the Financial Creditor on 28-03-2014. The said letter was not issued in the letter head of the company. Hence, the said balance confirmation certificate cannot be taken on record. It is further submitted that, any outstanding liabilities of the Corporate Debtor should be signed by only Director of the Company i.e. Mr.I.Shyam Prasad Reddy as per the Resolution of the Board of the Corporate Debtor, which is not the case here. v. That the Financial Creditor also filed Principal Account sheet evidencing the amount & date of disbursement of financial assistance to the Corporate Debtor. However, this also doesn't contain the letter head of the Financial Creditor nor signed by authorized person. vi. That, as per Form No. 1 - Part-IV - Column No.2, the d....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the form of allotment of govt. projects in lieu of the quid-pro-quo investment made in the companies of Shri. Y.S.Jagan Mohan Reddy. Il. That during the course of investigation, summons under section 50(2) of PMLA, 2002, were issued to various persons concerned and they were examined under section 50(3) of PMLA, 2002. After scrutinizing the documents available on record, certain properties were identified as proceeds of crime in terms of Section 2(1) (u) of PMLA, 2002 and the Joint Director, Enforcement Directorate, Hyderabad, issued Provisional Attachment Order vide PAO No.03/2015 dated 06.02.2015 under section (1) of section 5 of Prevention of Money Laundering Act, 2002 and provisionally attached immovable properties from different companies of Shri. I Syam Prasad Reddy including immovable properties held in the name of M/S. Indu Techzone Private Limited as the same fell within the meaning of 'Proceeds of Crime' as defined under section 2(1) (u) of PMLA, 2002. The particulars of the immovable property attached from M/S. Indu Techzone Private Limited are given hereunder: Sl. No. Property Description Name of the Party Value of the Property (in Rs.) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to 18.12.2018 at request. 12. During the hearing held on 21.12.2018, counsel for the Respondent stated that an earlier proposal for OTS was rejected by the Financial Creditor and they were making efforts to place another proposal for OTS in relation to the claim made by the Petitioner. Counsel for the Petitioner/ Financial Creditor filed memo regarding the status of the proceedings in relation to Prevention of Money Laundering Act (PMLA) proceedings. The matter adjourned to 24.01.2019 at request. 13. During the hearing held on 05.02.2019, it was brought to the notice that there are matters pending against the group companies wherein this Adjudicating Authority ordered notice to the authorities of ED for placing the information whether any proceedings are pending before them. Considering the above, Registry was directed to serve a notice to the concerned officials of the ED for filing a report regarding pendency of matters. 14. During the hearing held on 11.03.2019, Mr. K. Manmadha Rao, counsel representing the Office of ED filed vakalat and prayed time for filing counter. On 16.05.2019, counsel for the Respondent stated that an appeal preferred before the Hon 'ble NCLA....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... proceedings the Corporate Debtor has raised the following objections against the maintainability of the Company Petition filed by the Financial Creditor u/ s. 7 of the IBC: a) That there were defects in the Application, which were not removed within the stipulated time of 7 days. b) That there was no proper authorisation for filing this application by the Board of Directors in favour of the person signing the appeal. c) That the Financial Creditor has not taken the consent of other lenders of the Consortium before filing the instant petition as per terms of inter-creditor agreement. d) That the petition is not maintainable due to parallel proceedings under SARFAESI/DRT. e) That the application is barred by limitation. 24. As regards (a) above, it is seen from the record that the Adjudicating Authority had given direction to the Financial Creditor to remove the defects on 03.08.2018 within a period of 7 days from the same and a memo was filed in compliance attaching a neat copy of the Form I on 10.08.2018. 25. As regards (b) above, it is seen from record that by way of their submissions dated 03.01.2018, the Financial Creditor has ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nce confirmation certificate dated 28.03.2014 confirming principal amount of and interest of Il. Request letter for restructuring of existing term loans dated 25.04.2014, 29.04.2014, & 08.07.2014 showing their inability to make repayment of the term loan. III. Request for One Time Settlement dated 20.03.2018 with offer of Rs. 2.15 Crores, which has been rejected by the Financial Creditor vide their letter dated 16.04.2018. 30. In fact the record also shows that all these letters have been signed by authorised signatory from time to time, the final letter for OTS dated 20.03.2018 having been signed by the current Director. 31. It may also be noted that even during the current proceedings, the Counsel of the Corporate Debtor has been making submissions that they are making all efforts to settle the matter with the Financial Creditor, which is a clear indication of the liability on the part of the Corporate Debtor. 32. Keeping in view the above facts, it is clear that the Corporate Debtor has acknowledged the debt in writing as late as on 20.03.2018 and therefore provisions of section 18 of the Limitation Act will apply. As such, the provisions of Limitation....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Financial Creditor and his name is reflected in IBBI website. He has also filed his written consent in Form - 2. The IRP is directed to take charge of the Respondent/ Corporate Debtor's management immediately. He is also directed to cause public announcement as prescribed under Section 15 of the I&B Code, 2016 within three days from the date of this order, and call for submissions of claim in the manner as prescribed. 37. This Adjudicating Authority hereby declares the moratorium which shall have effect from the date of this Order till the completion of corporate insolvency resolution process for the purposes referred to in Section 14 of the I&B Code, 2016. We order to prohibit all of the following, namely: a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; c) Any action to foreclose, recover or enforce any security interest....