TaxTMI 
TaxTMI 
2021 (10) TMI 492
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.... as follows: - 3. The Corporate Debtor Company is engaged in the business of production of cold rolled steel and coated steel products for automobiles, home appliances, construction, etc. 4. The present petition is filed before this Adjudicating Authority on the ground that the Corporate Debtor failed to make payment of outstanding financial Debt of INR 1633,36,24,150.79 (INR Sixteen Hundred Thirty-Three Crores Thirty-Six Lakhs Twenty-Four Thousand One Hundred Fifty and Seventy-Nine Paisa Only) as on 31st May 2020. 5. The Financial Creditor submits that SBI along with other lenders, as part of two separate consortium of banks, extended loans in the nature of, (i) term loans, and (ii) Working capital credit facilities, to the Corporate Debtor in 2008 and 2013 respectively. Subsequently, these facilities were renewed, enhanced and restructured in year 2013 and 2016 respectively. Thereafter, on default of payment, the account of the Corporate Debtor was declared as a Non-Performing Asset (NPA) on 21.05.2016 by SBI. 6. The Applicant acquired the debt from SBI by way of a Deed of Assignment dated 03.05.2019 along with all rights, title and interest of SBI under the facility docum....
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....02.03.2013, the Term Loan Facility of INR 75 Crores was restructured with extension in door to door tenor from 9 years to 10 years. It was further approved that the repayment would be done in 18 unequal quarterly instalments starting from December 2013 to March 2018, along with 9 months moratorium from 01.01.2013 to 30.09.2013. Further, vide letter dated 20.03.2013, the SBP Bank also sanctioned One-time ad-hoc limit of INR 35 Crores which was valid up to 18.06.2013. Also, vide letter dated 04.12.2013, SBP approved the renewal of the existing Working Capital Credit Facilities. C. SBT: Vide letter dated 13.03.2013, the Term Loan Facility of INR 80 Crores was restructured with extension in door to door tenor from 9 years to 10 years and 9 months moratorium from 01.01.2013 to 30.09.2013. D. SBH: Vide letter dated 16.05.2013, the Term Loan Facility of INR 85 Crores was restructured with extension in door to door tenor from 9 years to 10 years and 9 months moratorium from 01.01.2013 to 30.09.2013. E. SBM: Vide letter dated 27.04.2013, the Term Loan Facility of INR 50 Crores was restructured with extension in door to door tenor from 9 years to 10 years and 9 months moratorium from....
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....k of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Travancore (SBT), State Bank of Patiala (SBP), and State Bank of Mysore (SBM) were acquired by SBI with effect from 01.04.2017. Consequent to the aforesaid mergers, all rights, entitlements and liabilities of the Erstwhile Associate Banks, including loan accounts of the Corporate Debtor maintained with them, were transferred to and vested in SBI. 13. Thereafter, through Joint Lenders Meeting dated 15.12.2015, all aforesaid consortium lenders designated PNB as the lead bank under both Consortium i.e. SBOI Consortium and IDBI Consortium. 14. In a series of default on part of the Corporate Debtor, SBI along with other Erstwhile Banks declared the account of the Corporate Debtor as an NPA on various dated between 21.05.2016 to 30.09.2016. 15. On 19.12.2014, the Corporate Debtor submitted a restructuring proposal to IDBI Bank whereby, it requested reduction in the Interest rates on the Facilities from existing level to 10.25% per annum ("2014 Restructuring Proposal"), waiver of penal and compounded interest and margin money. But, it was not approved. 16. Thereafter on 13.07.2016, the Corporate Debtor submi....
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....rporate Guarantor to repay the entire outstanding amount due and payable, i.e. INR 1219,87,72,156.33. 23. On 03.05.2019, the Financial Creditor, being the trustee of India Resurgence ARC Trust I, acquired the Debt arising out of the Facilities from SBI by way of Deed of Assignment. The same was even notified to the Corporate Debtor through letter sated 07.05.2019 specifying the Debt due from Corporate Debtor to SBI amounts to INR 1401,34,27,711.74. 24. In view to revive the Corporate Debtor, an attempt was made by the Financial Creditor by initialising a non-binding term sheet with the Corporate Debtor on 20.03.2019 for sale of the Corporate Debtor to a Third Party investor by provision for a "Standstill period". The corporate Debtor failed to take actions necessary to affect the transaction contemplated under the Non-Binding Term Sheet. 25. Subsequently, a Demand Notice was issued by the Financial Creditor on 23.08.2019, asking the Corporate Debtor to Pay entire due and payable under facilities, amounting to INR 1465,48,55,117.24. the Corporate Debtor responded to the Demand Notice through e-mail dated 30.08.2019. 26. Therefore, the Applicant submits that on account of default....
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....ows :- 32. The Corporate Debtor filed its Additional Affidavit dated 30.08.2021. The Corporate Debtor submits the present Company Petition was filed by India Resurgence ARC Private Limited on 15.07.2020. Thereafter, the Corporate Debtor had filed e reply dated 02.12.2020 along with an Interlocutory Application No. 2297 of 2020 the Maintainability Application. 33. The Corporate Debtor submits and admits that the Corporate Debtor has defaulted in servicing its Financial obligation towards the debt payable to the Financial Creditor. 34. Further the Corporate Debtor submits that they do not wish to press the objections raised in the reply and also the Maintainability Application and also withdraws the same. 35. The Corporate Debtor further submits that the Corporate Debtor Company admits and acknowledges the debt and default as set out in the Insolvency Application as well as unconditionally withdraws the Maintainability Application. The Corporate Debtor also undertakes that such order of this Hon'ble Tribunal will not be challenged before any court or tribunal by the Corporate Debtor and/or its affiliates/promoters/shareholders/board of directors. FINDINGS 36. We have heard the ....
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....n is complete under sub-section (2) of S. 7 of the Code. 40. On going through the facts and submissions of the Petitioner and upon considering the same, it is concluded that the Financial Creditor has established that the loan/ Working Capital Credit facilities was duly sanctioned and duly disbursed to the Corporate Debtor but there has been default in payment of Debt on the part of the Corporate Debtor. 41. Considering the above facts, we come to conclusion that the nature of Debt is a "Financial Debt" as defined under section 5 (8) of the Code. It has also been established that there is a "Default" as defined under section 3 (12) of the Code on the part of the Debtor. The two essential qualifications, i.e. existence of 'debt' and 'default', for admission of a petition under section 7 of the I&B Code, have been met in this case. 42. As a consequence, keeping the afore said facts in mind, it is found that the Petitioner has not received the outstanding Debt from the Respondent and that the formalities as prescribed under the Code have been completed by the Petitioner, we are of the conscientious view that this Petition deserves 'Admission'. 43. For the foregoing reasons, the ab....