TaxTMI 
TaxTMI 
2021 (6) TMI 190
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..... 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 mentioned as December 31, 2017. Part V of the applicat....
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....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 debtor transactions. (xv) Amended and Restated Inter-Creditor Agreement dated July 28, 2017 executed between the consortium of lenders, lenders' ....
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....s 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 Loan. (xxxiii) Summary of the principal outstanding, applicable interest, debt converted into OCDs and equity, bank guarantees and bank charges of the corporate debtor as on June 30, 2020. (xxxiv) Records of default dated June 16, 2020 with the information utility in 8 ....
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....ual 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 grant of individual limits within the overall limit dated 23-6-2004. (v) Supplemental agreement of hypothecation of goods and assets for increase in the overall limit dated 23-6-2004. (vi) Supplemental deed of personal guarantee for increase in the overall limit by the promoters dated 22-3-2004. (vii) Agreement ....
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....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. (vi) Revival letter dated 29-9-2006 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. (vii) Letter dated 21-9-2007 issued by Bank of Baroda ceding pari passu charges over the securities created in its favour by the corporate debtor. 7. Sanction letter d....
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....se 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 20-4-2011 issued on behalf of the corporate debtor accepting the sanctioned limits. 12. Sanction letter dated 2-4-2011 for INR 740.50 crores. (i) Board resolution dated 27-12-2011 in favour of availing of enhanced/additional limits for INR 740.50 crores by way of various credit facilities with necessary securities. (ii) Letter dated 27-12-2011 issued on behalf of the corporate debtor accepting the sanction of enhanced facilities. (iii) Letter regarding grant of individual limits within the overall limit dated 30-12-2011. 13. Sanction le....
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....s 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 conversion of part of debt (WCTL-I) into equity shares, on the terms and conditions stipulated therein. It was further submitted that during June 2015, the Consortium Members converted a portion of the debt of Rs. 82.50 crores into equity by preferential allotment of 21,37,33,963 equity shares, consequent on which the financial creditor's share was Rs. 40.80 crores for 10,57,06,828 shares. 10. Learned counsel for the financial creditor submitted that by a Notification dated June 13, 2016 the Reserve Bank of India introduced a Scheme for Sustainable Structuring of Stressed Assets (S4A) providing an option for ....
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....t 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 aggregated to Rs. 709,43,51,575.21 as on November 17, 2018 after giving credit to all the payments made by the corporate debtor and demanded payment of the aforesaid sum together with future interest and cost. In response to the said recall notice, it was submitted that the corporate debtor by its letter dated November 24, 2018 had admitted its liability. It was also submitted by learned counsel for the financial creditor that the corporate debtor by its letter dated June 28, 2018 proposed an one-time settlement for Rs. 328 crores, and subsequently, the financial creditor sanctioned an one-time settlement for Rs. 180.65 cr....
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.... 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 it. The record from the information utility also posits the same fact as the same shows as "deemed to be authenticated". Further, it may be seen that the financial creditor has classified the accounts of the corporate debtor as NPA on March 31, 2018 and thus under the provisions of the IBC, taking into consideration the decision of the Supreme Court in Gaurav Hargovindbhai Dave v. Asset Reconstruction Co. (India) Ltd. [2019] 8 Comp Cas-OL 250 (SC), in Civil Appeal No. 4952 of 2019 and B. K. Educational Services P. Ltd. v. Parag Gupta and Associates [2018] SCC Online SC 1921 ; [2019] 212 Comp Cas 1 (SC), the right to sue accrues ....
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....0155/2017-18/10324 (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, more specifically in terms of sections 15, 17 and 18 of the Code and file his report within 20 days before this Bench. The powers of the board of directors of the corporate debtor shall stand superseded as a consequence of the initiation of the CIRP in relation to the corporate debtor in terms of the provisions of the IBC, 2016. 21. As a consequence of the application being admitted in terms of section 7 of the Code, moratorium as envisaged under provisions of section 14(1) and as extracted hereunder shall follow in relation to the corporate debtor : "(a) the institution of suits or continuation of pending suits or proceedings against....