TaxTMI 
TaxTMI 
2020 (9) TMI 997
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....te Insolvency Resolution Process (CIRP) against Wadhwa Buildcon LLP (formally known as Wadhwa Buildcon Private Limited) (hereinafter called "Corporate Debtor") alleging that Corporate Debtor committed default in making payment of Rs.27,32,30,721.74/- by invoking the provisions of Section 7 of the Insolvency & Bankruptcy Code (hereinafter called "Code") read with Rule 4 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter called as "Rules"). 2. The Petition revels that the Petitioner sanctioned a Term Loan of Rs. 40.00 Crores vide sanction letter dated 29.01.2015 and thereafter on the request of the Corporate Debtor, the said Term Loan facility was reduced to 27.00 Crores vide letter dated 17.03.2018....
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....the SARFAESI Act,2002 to the Corporate Debtors and its partners on 18.07.18 informing that the account was classified as Non-Performing Asset in accordance with the guidelines issued by Reserve Bank of India, with effect from 30.06.18 and demanding Rs. 25,48,13,466/-with uncharged interest from 30.06.18. 6. The Corporate Debtor filed its reply and raised the following contentions: a. Since the value of the security offered by the Corporate Debtor is around Rs. 127,45,42,000/- against the outstanding dues of Rs. 27,32,30,721.74/- as on 31.07.2019, which is much higher than the debt amount, the Petition does not deserves admission. b. Even though the Corporate Debtor has given OTS and restructuring proposals, the Petition....
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....The request of the Corporate Debtor time and again to release certain collateral to enable the Corporate Debtor to raise fund was declined by the Petitioner h. Due to the non-cooperation of the Petitioner, the Corporate Debtor could not proceed further in selling the properties. The Petitioner failed to consider the request of the Corporate Debtor for rehabilitation/reschedulement/ account regularization plan as per RBI guidelines. i. On 08.11.2018, a request was made to the Petitioner for restructuring the loan account by listing out the difficulties faced by the Corporate Debtor which led to the account becoming NPA. Further on 30.03.2019 an one time settlement proposal was given to settle the account for Rs. 22.68 Crore....
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....07" 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 to Adjudicating Authority) Rules, 2016. Under Rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed form in 5 parts, which requires particular....
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.... days of admission or rejection of such application, as the case may be." 8. This Bench having been satisfied with the petition filed by the Petitioner which is in compliance of provisions of Section 7 of the Code, admits this Petition declaring moratorium with the directions as mentioned below: (a) that this bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgement, decree or other in any court of law; transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the....