TaxTMI 
TaxTMI 
2022 (5) TMI 486
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....016. The Applicant is a scheduled bank and is a Corporate constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Star House, C-5, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051 and carrying on business through its different branches including one at Marwade Branch, Solapur, Maharashtra (herein after referred to as "Financial Creditor/Applicant). The Applicant submits that the Respondent, Fabtech Sugar Limited is Company having its Registered Office situated at J 504, MIDC Bhosari, Pune, Maharashtra (herein after referred to as Corporate Debtor). The Corporate Debtor is Agro based Company involved in the manufacturing of sugar and its allied produ....
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....ter of the present Interlocutory Application is in relation to Corporate Debtor's obligations to the H & T loan facility granted by the Applicant's Marwade (Solapur) branch, and not towards claim for Term Loan granted by Bank of India, Pune branch, and not towards claim for Term Loan granted by Bank of India, Pune Branch. 6. The Corporate Debtor approached the Applicant vide letter dated 7th March 2017 and apprised the Applicant about the intent of the Corporate Debtor to crush 7 lac MT of Sugar Cane in the coming harvest season of 2017-2018 and requested the Applicant to provide financial assistance to the tune of Rs. 31.50 crores as Harvesting & Transportation ("H & T") Loan to the Contractors engaged by the Corporate Debtor. T....
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.... follows; a. The mode of disbursement for the loan availed by the Corporate Debtor was by way of debiting loan account of individual contractors and by crediting savings account of such individual contractors engaged by the Corporate Debtor. b. Proposal processing charges to be paid by the Corporate Debtor. c. The repayment of loan was by way of the obligation of Corporate Debtor to deduct loan amount and interest from the sugarcane H & T bills d. Undertaking from Corporate Debtor for repayment of loan along with PDC in case payments are not recoverable from the bills of individual contractors e. Undertaking from Corporate Debtor that it will not avail H & T loan from any other Bank for the crush....
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.... repay back the entire loan amount with interest in full to the Bank. v. Undertaking issued by the Directors of the Corporate Debtor giving Personal Guarantees. vi. Corporate Guarantee given by the holding company of the Corporate Debtor i.e. Fabtech Projects & Engineers Limited and Abhijeet Spinning Mills India Limited. vii. Creation of Equitable Mortgage on the immovable property owned by Fabtech Projects & Engineers Limited, Abhijeet Spinning Mills India Limited and the Directors of the Corporate Debtor. viii. Post Dated Cheques ("PDC") issued by the Corporate Debtor along with Undertaking. ix. Board Resolution passed in the Board Meeting of the Corporate Debtor held on 17th April 2017, accept....
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....btor. Finding 13. Heard the counsel for the Applicant and the Respondent and perused the records. The legal issue arising for consideration is whether i. the Corporate Debtor is liable to repay the monies back under the Harvesting and Transportation Loan? ii. Whether the IRP/Respondent was correct in rejecting the claim of the Applicant as Financial Creditor of the Corporate Debtor? 14. Given the factual matrix, it is seen that the Corporate Debtor on 07.03.2017, had applied for a Financial Assistance of Rs. 31.50 crores to hire H & T Contractors for the crushing season 2017-18. The applicant bank on 29.03.2017, had sanctioned the said H & T Loan to the tune of Rs. 30.48 crores. The terms of the loan further captu....
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....ial of the Sugar Factory was also mentioned. 16. The Respondent/RP vide an email on 17.08.2021 intimated the applicant that the bank guarantee amounting to Rs. 1,78,10,470/- stands rejected and the claims amounting to Rs. 45,02,39,583/- towards the H & T Loan is under verification. Later, the Respondent has rejected the claim on 18.09.2021. 17. This Bench is of the considered opinion that the sanction letter dated 29.03.2017 issued by the applicant bank demonstrates that the loan is disbursed at the behest of the Corporate Debtor and that there is undertaking by the Corporate Debtor to repay the amounts due under the said loan to the applicant. It was expressly agreed by the Corporate Debtor that the H & T Contractors who have execute....