TaxTMI 
TaxTMI 
2021 (6) TMI 190
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.... interim resolution professional (IRP). 2. Part I of the application, sets out the details of the financial creditor from which, it is evident that the financial creditor is body corporate constituted under the State Bank of India Act, 1955 and the registered office as per the application is stated to be at Corporate Centre at Madame Cama Road, Nariman Point, Mumbai-400 021. 3. As per Part II of the application, the corporate debtor is a limited company with Corporate Identification Number L45201TN1997PLC038610 incorporated on July 11, 1997 and registered office of the corporate debtor as per the application is stated to be at No. 8/33, Padmavathiyar Road, Jeypore Colony, Gopalapuram, Chennai-600 086. As per Part III of the application, the financial creditor has proposed the name of one Mr. Krishnasamy Vasudevan, Registration Number : IBBI/IPA-001/IP-P00155/2017-18/ 10324 as the interim resolution professional. 4. Part IV of the application signifies the amount of debt to the tune of Rs. 675,57,51,695.39 (rupees six hundred and seventy five crores fifty seven lakhs fifty one thousand six hundred and ninety five and paise thirty nine only) and the date of default is mentio....
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....tion of securities in respect of each financial facility availed. (x) Deed of personal guarantee executed on May 22, 2017 by the directors of the corporate debtor in favour of IDBI Trusteeship Services Ltd. (Security Trustee) as per MRA terms. (xi) Deed of corporate guarantee dated May 22, 2017 executed by CCCL Infrastructure Ltd., in favour of IDBI Trusteeship Services Ltd. (Security Trustee) as per MRA terms. (xii) Deed of corporate guarantee dated May 22, 2017 executed by CCCL Pearl City Food Port SEZ Ltd., in favour of IDBI Trusteeship Services Ltd. (Security Trustee) as per MRA terms. (xiii) Trustee agreement executed between the corporate debtor and IDBI Trusteeship Services Ltd., appointing IDBI Trusteeship Services Ltd., as debenture trustee in terms of section 71 of the Companies Act, 2013. (xiv) Trust and retention account agreement dated July 28, 2017 executed between the lenders (State Bank of India, Bank of Baroda, ICICI Bank Ltd., IDBI Bank Ltd., and Tata Capital Financial Services Ltd.) and the corporate debtor and the financial creditor State Bank of India for appointment of SBI as the account bank for all corporate debto....
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....s. (xxvii) Reply to the loan recall notice dated November 20, 2018 from the corporate debtor admitting measures for settlement. (xxviii) Letter of sanction given by the financial creditor for the OTS amount of INR 180.65 crores dated June 4, 2019. (xxix) Letter dated November 29, 2019 submitted by the corporate debtor relating to a compromise proposal to the financial creditor. (xxx) Notices dated December 5, 2019 and December 6, 2019 issued under the SARFAESI Act, 2002 by the financial creditor to the corporate debtor and guarantors (personal and corporate). (xxxi) Revival letter dated March 18, 2020 acknowledging debt to the tune of INR 1189.94 crores in respect of working capital lenders along with board resolution of the corporate debtor dated February 6, 2020 resolving to affix common seal in revival letters of debt/balance confirmation letters favouring SBI. (xxxii) Statement of accounts of the financial creditor in 8 loan accounts-cash credit, corporate loan, construction equipment loan, working capital term loan-I, Working capital term loan-II, Funded Interest Term Loan-I, Funded Interest Term Loan-II, Additional Term Lo....
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....h necessary securities. (ii) Letter dated 22-3-2004 issued on behalf of the corporate debtor accepting the sanction of enhanced facilities. (iii) Supplemental agreement of loan for increase in the overall limit dated 22-3-2004. (iv) Letter regarding grant of individual limits within the overall limit dated 22-3-2004. (v) Supplemental agreement of hypothecation of goods and assets for increase in the overall limit dated 22-3-2004. (vi) Supplemental deed of personal guarantee for increase in the overall limit by the promoters dated 22-3-2004. 3. Sanction letter dated 23-6-2004 for INR 34.50 crores. (i) Board resolution dated 23-6-2004 in favour of availing of enhanced/additional limits for INR 34.50 crores by way of various credit facilities with necessary securities. (ii) Letter dated 23-6-2004 issued on behalf of the corporate debtor accepting the sanction of enhanced facilities. (iii) Supplemental agreement of loan for increase in the overall limit dated 23-6-2004. (iv) Letter regarding gran....
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....idual limits within the overall limit dated 23-8-2005. (iv) Supplemental agreement of hypothecation of goods and assets for increase in the overall limit dated 23-8-2005. (v) Supplemental deed of personal guarantee for increase in the overall limit by the promoters dated 23-8-2005. (vi) Forms 17 & 13 dated 28-1-2005, issued by the Registrar of Companies w.r.t. satisfaction of charges of Union Bank of India. 6. Sanction letter dated 5-9-2006 for INR 204.24 crores. (i) Board resolution dated 28-9-2006 in favour of availing of enhanced/additional limits for INR 204.24 crores by way of various credit facilities with necessary securities. (ii) Supplemental agreement of loan for increase in the overall limited dated 29-9-2006. (iii) Letter regarding grant of individual limits within the overall limit dated 29-9-2006. (iv) Supplemental agreement of hypothecation of goods and assets for increase in the overall limit dated 29-9-2006. (v) Letter giving consent for disclosure of information and undertaking dated 29-9-2006. ....
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.... for INR 50 crores by way of various credit facilities with necessary securities. (ii) Letter dated 3-1-2011 issued on behalf of the corporate debtor accepting the sanction of enhanced facilities. (iii) Supplemental agreement of loan for increase in the overall limit up to INR 740.50 crores dated 1-2-2011. (iv) Letter regarding grant of individual limits within the overall limit dated 1-2-2011. (v) Supplemental agreement of hypothecation of goods and assets for increase in the overall limit dated 1-2-2011. (vi) Letter regarding consent for disclosure of information and undertaking dated Nil (vii) Revival letter dated 1-2-2011 issued in favour of the financial creditor, acknowledging liability and reviving all loan documents, guarantees, supplemental documents, supplemental guarantees and letters executed by the corporate debtor and its promoters from 10-10-2003. (viii) Master agreement dated 1-2-2011. 11. Sanction letter dated 2-4-2011 for improvement in pricing of fund based working capital (i) Letter dated 20-4-2....
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....the corporate debtor including the financial creditor, who is a lead bank. Subsequently, by a letter of sanction dated May 15, 2014 the financial creditor renewed and sanctioned credit facilities aggregating to Rs. 983.92 crores to the corporate debtor. 8. Learned counsel for the financial creditor submitted that the IDBI Bank Ltd., exercised its exit option in terms of the CDR package by a deed of accession dated June 30, 2014 executed between the corporate debtor and the consortium of lenders including the financial creditor and consequently the CR package was revised and M/s. Tata Capital Financial Services Ltd., was included as a Member in the Consortium of Lenders of the corporate debtor. It is pertinent to mention here that the said M/s. Tata Capital Financial Service Ltd., had also filed an application under section 7 of the IBC, 2016 against the corporate debtor in I. B. A. No. 228 of 2019. 9. Learned counsel for the financial creditor submitted that by its sanction letter dated June 26, 2015 the financial creditor had sanctioned the continuation of the facilities granted earlier vide letter of sanction dated May 15, 2014 aggregating to Rs. 872.73 crores and also for ....
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....l for the financial creditor submitted that despite the fact that the benefits of CDR and S4A was extended to the corporate debtor by way of restructuring of facilities, the performance of the corporate debtor deteriorated and only a meagre sum was realized by the lender's including the financial creditor through payments against term loan and cash credit facilities and by redemption of some debentures and sale of some shares. In view of the continued non-performance of the corporate debtor and the commission of gross events of default as spelt out in the Master Restructuring Agreement dated May 9, 2017 the account of the corporate debtor was classified as non-performing asset on March 31, 2018 and thereafter, the loan accounts of the corporate debtor got migrated on May 29, 2018 from the financial creditor's Leather International Branch to the Stressed Assets Management Branch. 12. Learned counsel for the financial creditor further submitted that subsequent to the abolishment of S4A under the RBI Circular dated February 12, 2018 the financial creditor by its recall notice dated November 20, 2018 recalled the loans and facilities granted to the corporate debtor which agg....
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....d directed that notice be sent to the registered office address of the corporate debtor as reflected in the master data maintained with the MCA. Thereafter when the matter came up for hearing on January 25, 2021 the corporate debtor was represented by a counsel and this Tribunal directed the corporate debtor to file its reply within a period of ten days. Subsequently, when the matter came up for hearing on February 23, 2021 and March 11, 2021 it is seen that the corporate debtor has not filed its counter and finally seven days time was granted to the corporate debtor to file its counter and finally when the matter came up for hearing on March 31, 2021 it is seen that the corporate debtor has not filed its counter and also no defence has been put forth by the corporate debtor in relation to the present case. 16. We have heard the submission made by learned counsel for the parties and perused the records, including the documents placed on file. From the averments made in the application it is seen that the corporate debtor has committed default in repayment of its dues which it had availed of by the financial creditor by way of various credit facilities sanctioned and granted by i....
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....ate debtor for a sum exceeding Rs. 1 lakh. 18. Also the default arising in the present application is much prior to the advent of the Covid-19 pandemic and hence the corporate debtor cannot seek shelter also under section 10A of the IBC, 2016. 19. Thus taking into consideration the facts and circumstances of the case as well as the position of law, we are of the view that this application as filed by the applicant-financial creditor is required to be admitted under section 7(5) of the I and B Code, 2016. 20. The financial creditor has proposed the name of Mr. Krishnasamy Vasudevan, with Registration Number : IBBI/IPA-001/IP-P00155/2017-18/10324 (e-mail id : [email protected]) as the interim resolution professional (IRP) who has also filed his written consent in form 2 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 which is placed at pages 1206 to 1208 of the typed set filed along with the application. The proposed IRP who is appointed shall take forward the process of corporate insolvency resolution of the corporate debtor. The IRP appointed shall take in this regard such other and further steps as are required under the statute, mo....