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TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 270
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....he Respondent/ Corporate Debtor on grounds of its inability to liquidate its financial debt. 2. The facts mentioned in the application in brief are as follows: i. That the Corporate Debtor, a company incorporated under Companies Act, 1956 approached the Financial Creditor, a member of the consortium of banks led by Allahabad Bank, to sanction working capital of Rs. 30 Crore. ii. The Financial Creditor as a member of the consortium of banks sanctioned the credit facility to the Corporate Debtor on 03.08.2007. The credit facility was renewed on 18.04.2009, 16.01.2010, 30.03.2011 and 16.04.2011. iii. The Corporate Debtor signed and executed all necessary documents on every occasion pursuant....
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.... member banks of the consortium having market value of Rs. 2.54 Crores as per valuation report by Chaney & Associates dated 15.12.2006. Common Collateral Security for both TL and Working Capital facilities: a) Equitable mortgage (pari passu charge among the member banks) of residential property of Sri Hari Ram Bindal bearing No. K-1/32, Model Town-II Delhi. b) Pledge of total 39, 48, 068 shares held by the promoters on pari passu basis among the consortium member banks. c) Pledge of 50% of shares out offresh capital of Rs. 24 crores to be raised by the promoters on pari passu basis among the consortium member banks. v. That further at the request of Corporate Debtor ....
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....e Debtor is not able to pay the outstanding amount of the Applicant Bank/ Financial Creditor as experienced by the bank several times by requesting and sending notices. 3. We have heard the Ld. Counsel for the petitioner and perused the averments made in the application. 4. After the hearing of the main application, some additional documents alongwith the written submissions have been filed on behalf of the applicant, therefore, we would like to consider those documents and the written submissions. 5. Ld. Counsel for the petitioner submitted that although the NPA was declared on 06.08.2012 but again loan was sanctioned on 12.01.2013, which was subsequently modified on 12.01.2015. He further submitted that on....
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....le at page 16 to 18 of the additional documents. We have gone through these documents and we notice that the heading of the document is status of plant and repayment of loans and from the plain reading of the averment made in this document, we notice that there is no clear cut acknowledgment as it was in the settlement agreement dated 29.04.2014. The concluding para of this document is quoted below: - "It is needless to mention that option for recovery through legal process shall perhaps lead to closure of plants thus deteriorating the valuation of assets and dimming the hopes of early realization of the amount now expected keeping in mind the above, we earnestly request you to kindly take a pragmatic view and ensure that company&#....
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....son entitled to the property or right; (b) the word "signed" means signed either personally or by an agent duly authorised in this behalf; and (c) an application for the execution of a decree or order shall not be deemed to be an application in respect of any property or right." 10. In the light of the aforesaid provision, when we consider the letter dated 24.03.2017 upon which the applicant has placed reliance, we are of the considered view that this letter would not be treated as acknowledgement of debt under Section 18 of the Limitation Act. 11. At this juncture, we would also like to refer to the decision of Babulal Vardharji Gurjar vs. Veer Gurjar Aluminium Industries Pvt. Ltd. Reported in Manu/SCOR/....