TaxTMI 
TaxTMI 
2019 (8) TMI 1787
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....ioner/Financial Creditor") is a company incorporated on 17.04.2016 having its registered office at Reliance Centre, North Wing, 6th Floor, Off Western Express Highway, Santacruz, Mumbai - 400055. b. Whereas, M/s. Hotel Poonja International Private Limited (hereinafter referred to as "Respondent/Corporate Debtor") is a private limited company incorporated on 10th September, 1984 bearing CIN U55101KA1984PTC006360. It's authorised and paid up share capital is Rs. 2,00,00,000/-. The registered office of the Respondent/Corporate Debtor is situated at K S Rao Road, Hanpankatta, Mangalore, Karnataka-575001. c. The Respondent/Corporate Debtor had approached Vijaya Bank for securing a loan and after all the compliances a Term Loan Facility of Rs. 40,00,000/- was granted to the Corporate Debtor. The Corporate Debtor has defaulted to make the payment of the loan and as a result of which the account was declared as NPA on 1.04.1993. As on 18.07.2018, an amount of Rs. 145,44,46,651.32 is outstanding and due. d. Whereas, Vijaya Bank assigned the debt to M/s. Reliance Asset Reconstruction Company Limited i.e., Petitioner/Financial Creditor herein, vide assignment ag....
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....Bank addressed a letter dated 06.07.2009 contending that they are going to publish the name of the Respondent as wilful defaulter. The Corporate Debtor sought to extend the time for payment and pay the balance amount of Rs. 40 lakhs vide letter dated 27.4.2011. Vijaya Bank vide letter dated 14.5.2011 informed the Corporate Debtor, that the decree was assigned and transferred to the Petitioner/Financial Creditor. d. As Vijaya Bank and the Petitioner were not considering the case of the Respondent, the Respondent approached the Hon'ble High Court of Karnataka by filing W.P. No. 28437/2011 and sought for writ of mandamus, directing Vijaya Bank to consider the representation dated 27.04.2011 and sought for the Bank to furnish an attested copy of the alleged Assignment Agreement dated 3.05.2011. The Hon'ble High Court of Karnataka disposed the writ petition vide order dated 30.10.2013 stating that 'taking note of the exchange of correspondences between the Respondent and the Petitioner, and the Petitioner had indicated that the settlement could be possible in terms as indicated therein, it would be open for the for the Respondent to make substantial payment out of t....
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....o the Petitioner. Due to pendency of the proceedings before the Hon'ble High Court of Karnataka with regard to the claims made by the Petitioner, it is not open for the Petitioner to invoke Section7 of the IBC, 2016. h. The Respondent has not committed any default in the matter and they are continuously corresponding with the Petitioner, which clearly shows that the initiation of Corporate Insolvency Resolution Process is not proper and same requires to be rejected. 3. Heard Shri Gurudas Kannur, Learned Senior Counsel appearing on behalf of the Petitioner, Ms. Kavitha, Ms. Suja Surendran, Learned Counsels for the Petitioner and Shri Bopanna P.C., Learned Counsel for the Respondent, and perused the application and documents placed on record. 1) The Company Petition is filed U/s 7 of IBC, 2016, which reads as under: "7. (1) A Financial Creditor either by itself or jointly with (other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government), may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a defau....
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....in dispute that Vijaya Bank had sanctioned loan of 40 lakhs to Corporate Debtor on 20.05.1986 and it has defaulted in making payment of the loan as per the terms of the loan agreement. The account of the Corporate Debtor was classified as NPA on 1.04.1993. Vijaya Bank also filed original application OA No. 547/1998 before DRT, Bangalore and DRT has decreed and issued a recovery certificate by issuing an order dated 9th April, 2001. Further, due to non-repayment of the amount as per the order dated 9th April, 2001, DRT, Bangalore issued another recovery certificate vide DCP No. 2691 dated 27.03.2003 directing the Recovery Officer to recover the amount of debt as stated therein. Subsequently, Vijaya Bank assigned the loan disbursed in favour of the Corporate Debtor to the Petitioner/Financial Creditor herein vide Assignment Agreement dated 3rd May, 2011. Consequently, an amended recovery certificate dated 13th May, 2011 was issued by the DRT, Bangalore recognising the assignment to the Petitioner/Financial Creditor and vesting rights of recovery with it. 5. Shri Bopanna P.C., Learned Counsel for the Respondent, has opposed the petition and stated that writ petitions filed before t....