AI Drafter 
TaxTMI 
TaxTMI 
2019 (9) TMI 1455
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....Srivastava, Senior Manager, has been authorised to file this application on behalf of Financial Creditor. (The Copy of the general power of Attorney is annexed as Annexure I of the application). 3. The Respondent "M/s Shahjahanpur edibles Private Limited" is a private limited company duly incorporated on 12.03.2014 (Having its Registered Office at, Rausar Kothi Road, Village- Mishripur, District- Shahjahanpur CIN U15400UP2014PTC063318). The authorised share capital of respondent is Rs. 1,80,00,00,00/- (Rupee Eighteen Crores Only) and Paid- Up share Capital is Rs. 1,80,00,00,00/- (Rupee Eighteen Crores Only). 4. Brief facts related to petition are as follows: i. The learned counsel for the applicant submitted that the corporate debtor vide its board resolution dated 25.03.2014 and 24.04.2014 resolved to avail cash credit and term loan facilities from the applicant bank. The corporate debtor company through its directors approached the applicant bank for grant of term loan facility and cash credit facility which was duly considered and sanctioned by the applicant bank vide its credit sanction intimation dated 23rd April, 2014 through which cash credit facility of Rs. 3....
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.... B. Term Loan Facility for Rs. 5,11,74,000/- (Rupees Five Crores Seventy Four Thousand) a. Agreement for term loans (ID-12014) b. Common deed of hypothecation of movables/assets/debts (ID 12004) c. Letters of undertaking/declaration from the borrowers (ID 13001) v. Further the counsel for the applicant submitted that, to secure aforesaid credit facility of Rs. 11,11,84,000/- availed by the corporate debtor, (1) Sri Shiv Kumar Agarwal, (2) Sri Ishwar Chandra Agarwal, (3) Mrs. Laxmi Devi Agarwal, (4) Mrs. Anita Agarwal, (5) Sri Sumat Prasad Jain, (6) Sri Samaksh Jain, (7) Mrs. Sharanjeet Jain, (8) Mrs. Madhu Jain have given their personal guarantees for repayment of repayment of aforesaid facilities together with stipulated interest availed by corporate debtor and inconsideration thereof have jointly executed, signed and delivered to the financial creditor/applicant bank Guarantee Agreement (ID-12001) dated 28.06.2016 acknowledging therein their liability to repay the same as equal and co-extensive with the principle borrower. vi. Further submitted that, after availing the aforesaid credit facilities from the financial creditor/ap....
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....ed on 13.09.2018 regarding both the aforesaid properties. However, the same were withdrawn. x. Further it is submitted in the counter affidavit by the counsel for the respondent that even after the filing of the present petition, in response to the reply of the Corporate Debtor with regard to the objection to the allotment, of the account to the recovery agency, the Financial Creditor through letter dated 11.04.2019 has advised the Corporate Debtor to cooperate for settlement of account and the respondent company with the intention of settling the accounts, is ready to cooperate with the Financial Creditor however the Financial Creditor has wrongly mentioned that a sum of Rs. 10,62,59,056.75 is due upon the Corporate Debtor thus prays for the present petition to be dismissed. xi. Further submitted that, since the above mentioned amount is highly disputed and has not only been admitted by the respondent/Corporate Debtor but the Financial Creditor has wrongly prepared the accounts and in connivance with the Mrs. Madhu Jain, Samksh Jain, Mrs. Sharangeet Jain, Sumat Prasad Jain filed the present Company petition. xii. In the reply to the counter affidavit, th....
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....fidavit filed on behalf of the respondent, I find that respondent has raised the question of maintainability on the ground referred in the counter affidavit. I have carefully examined the ground mentioned on counter affidavit along with the provisions contained Under Section 7 of IB Code. The relevant provision of Section 7(1), (2), (3) as quoted below : Section 7: Initiation of corporate insolvency resolution process by financial creditor: (I) A financial creditor either by itself or jointly with [other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government] may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred. Explanation. --For the purposes of this sub-section, a default includes a default in respect of a financial debt owed not only to the applicant financial creditor but to any other financial creditor of the corporate debtor. (2) The financial creditor shall make an application under sub-section (1) in such form and manner and accompanied with such fee as may b....
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....is prove to the satisfaction of the adjudicating authority may reject an application and not otherwise". 11. In the case of Amy Agarwal vs. Central Bank of India (2018) 208 Comp Cas 402(NCLAT) Hon'ble NCLAT held : "When in case a "Corporate Debtor" commits a default of financial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the "financial creditor" to satisfy itself that a default has occurred. Other considerations, such as the existence a dispute or discrepancy are irrelevant, so long it has not been disputed the same debt is due and is payable to the financial creditor and the corporate debtor has defaulted." 12. Therefore, in view of the aforesaid decisions, I would like to consider whether petitioner has succeeded in establishing the fact that there is financial debt or default in part of corporate debtor in making payment of debt. 13. From the perusal of averments made in the application filed on behalf of petitioner, in counter affidavit filed by the respondent and reply to the counter affidavit filed by the petitioner, this adjudicating Authority finds, in Para 37 of the Counter a....