TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 1972
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....r/w Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against M/ s. Sholingur Textiles Limited (hereinafter referred to as 'Corporate Debtor'). The prayer made is to admit the Application, to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor, declare moratorium and appoint Interim Resolution Professional (IRP). 2. Heard the Counsel for the Financial Creditor, Counsel for the Corporate Debtor and perused the pleadings including the documents placed on file. 3. The Financial Creditor has claimed the Rs. 53,80,21,376.31p which consists of amount of Rs. 34,30,00,559.64p as per Certificate plus interest of Rs. 19,50,20,817/ calculated @ 15.75% p.a. on Rs. 34,30,00,....
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....itor. In addition to the above, the Corporate Debtor has created mortgage over the immovable properties in favour of the UCO Bank as security for due repayment of the loans availed by the Corporate Debtor besides executing the Guarantee Agreement. The copy of Hypothecation Deed(s) executed in respect of various facilities and agreement of extension of charge are placed at pages 43 to 96 and 105 to 136 and copy of guarantee agreement is placed at pages 97 to 104 of Volume-I of the typed set filed with the Application. 6. After availing various credit facilities and executing above documents, the Corporate Debtor has failed to make payments of the outstanding amount to the UCO Bank. Subsequently, the UCO Bank filed Original Application - 237....
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....nection with the said conditions, the Counsel for the Corporate Debtor has referred to the Writ Petition No.19566 of 2015 wherein a stay was granted by the Hon'ble High Court Madras which remained in force from 2016-2017 and during November, 2017 the stay was vacated. The guidelines for sale of lands were got approved on 12.05.2017 and the initial approval was given by the DTCP on 17.10.2017, however, the approval was subsequently cancelled on 07.11.2017. Again the Corporate Debtor has got the approval on 22.02.2018, but by that time the Financial Creditor revoked the settlement on 25.04.2018. 12. On this basis, the Counsel for the Corporate Debtor has referred to the time schedule for making the payment of the outstanding debt as on 15.07....
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....he date of the said letter, to this there has been no response from the Financial Creditor. 16. The Counsel for the Corporate Debtor has referred to the communication made on 28.05.2018 wherein the Financial Creditor has removed the charge on plant and machinery and payment of Rs. 27 Lakhs was made, the copy of which is placed at page 8 of the typed set filed with the Objection. This has been done after revocation of the terms of the settlement deed vide their communication dated 23.04.18. The Counsel for the Corporate Debtor has also referred to another communication dated 22.10.2018 wherein the terms and conditions for repayment of the outstanding debt were reiterated as were given vide the proposal dated 03.04.2018 17. The Counsel for ....
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....nce with the terms and conditions of the restructuring of the outstanding debt and there is no hope for any progress from the side of the Corporate Debtor in making payments of the outstanding debt, and there is default on the part of the Corporate Debtor. 21. The submissions made by the Counsel for the Financial Creditor appear to be plausible, as sufficient opportunity has been given to the Corporate Debtor for making payment of the outstanding debt but it failed to do so. Although, some plausible explanations have also been given, by the Counsel for the Corporate Debtor for non-compliance of the agreements, yet the same are not sufficient to reject the Application of the Financial Creditor. 22. In view of the facts and circumstances as....
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....of Corporate Insolvency Resolution Process, for the purposes referred to in Section 14 of the I&B Code, 2016. It is hereby ordered to prohibit all of the following, namely: (a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstructio....