TaxTMI 
TaxTMI 
2021 (10) TMI 492
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.... The Submissions of the Financial Creditor are 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 a....
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.... Working Capital Credit Facility was renewed/enhanced as follows: In Year 2013 A. SBI: The Term Loan Facility and Working Capital Credit Facility were renewed cum restructured up to a limit of INR 450.11 Crores vide Sanction Letter Dated 30.10.2013. B. SBP: Vide letter dated 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....
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....2. Subsequently, the erstwhile associate banks of SBI, who were also members of the SBOI Consortium and/or IDBI Consortium have come to be vested in SBI following their acquisition by/merger into SBI from time to time, as detailed below: i. The State Bank of Indore (SBOI) was acquired by SBI with effect from 26.08.2010. ii. State Bank OF Saurashtra (SBS) was acquired by SBI with effect from 13.08.2013. iii. State Bank 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 ....
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....SBBJ issued notice dated 24.01.2017, accelerating the Facilities and calling upon the Corporate Debtor and the Guarantor to repay the outstanding amount of INR 246,42,79,606.59 immediately. But, the Corporate Debtor as well as the Guarantor failed to repay the aforesaid debt to SBBJ. The Corporate Debtor responded to the Recall Notice through its legal counsel. 22. Subsequently, SBI issued notice dated 25.07.2018 accelerating the Facilities and calling upon the Corporate Debtor, the Guarantor and the Corporate 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 ....
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....ence of persistent defaults on the part of the Corporate Debtor in repayment of such debt 31. The Financial Creditor filed an Affidavit dated 27.08.2021 for the replacement of the proposed Interim Resolution Professional as mentioned in the Petition. The Name and details of the IRP are as under: Proposed Interim Resolution Professional Name Mr. Ajay Joshi Registration No. IP Registration No. IBBI/IPA-003/IP-N00019/2017-18/10166 Address: Dwarka, A/2 Phatak Baug Society, 999 Navi Peth, Pune 411030. Email [email protected] The Submissions of the Corporate Debtor are as follows :- 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 sub....
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....application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application: Provided that the Adjudicating Authority shall, before rejecting the application under clause (b) of sub-section (5), give a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice from the Adjudicating Authority. a. Hence, accordingly We, have perused this Petition/Application filed under Section 7 of the Code r.w. Rule 4 of the Rules and come to conclusion that, pursuant to S. 7 (7) (5) (a) of the Code this Application 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 s....