TaxTMI 
TaxTMI 
2022 (5) TMI 1363
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....hat the Corporate Debtor company obtained various credit facilities from the Financial Creditor Bank in several accounts with different sub-limits with an overall limit which was enhanced from time to time. The Corporate Debtor company obtained credit facilities and from time to time executed various transaction documents for the overall limit which was enhanced and/or varied from time to time against hypothecation of its assets. It is submitted that the instant debt is arising out of the said Credit facilities obtained by the Corporate Debtor Company. 4. It is submitted that in 2015, the Corporate Debtor Company had approached the Financial Creditor to avail credit facilities for Business requirements. By a letter dated 5th May, 2015, the Financial Creditor sanctioned and granted a Credit facility for a total sum of Rs. 5,00,00,000/- (Rupees Fifty Crore only) to the Corporate Debtor for a period of 12 months from the date of such sanction. A copy of the Working Capital Demand Loan Sanction Letter dated 5th March, 2015 is annexed as Annexure-D. 5. It is submitted that the aforesaid credit facility was sanctioned to the Corporate Debtor on the basis of reasonable representations a....
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....5, are annexed as Annexure-I and J. 9. It is submitted that on or about the month of January, 2016 the Corporate Debtor applied for another Working Capital Demand Loan for a sum of Rs. 9,60,00,000/- in addition to the existing facility of Rs. 4,40,00,000/- which after due verification was duly sanctioned by the Financial Creditor and as such the aggregating new facility stood for a sum of Rs. 14,00,00,000/- (Rupees Fourteen Crore only) vide a sanction letter dated 22nd February, 2016. A copy of the Sanction letter dated 22nd February, 2016 is annexed as Annexure-K. 10. It is submitted that with regard to the above enhancement to the tune of Rs. 14,00,00,000/- vide a sanction letter dated 22nd February, 2016, the Corporate Debtor duly executed a loan Agreement and also issued a Demand Promissory Note to that effect in favour of the Financial Creditor, on 25th February, 2016, for a sum of Rs. 14,00,00,000/- (Rupees Fourteen Crore only) together with interest at the rate of 12% per annum. A copy of the Facility Agreement and a copy of the Demand Promissory Note both dated 25th February, 2016 are annexed as Annexure-L. 11. It is further submitted that a Power of Attorney was execute....
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....ing the Title Deeds. A copy of the Declaration and the Memorandum for Recording Creation of Mortgage are collectively annexed as Annexure-S. 18. It is submitted that on or about the month of February, 2017, the Corporate Debtor applied for renewal of the existing two credit facilities of Rs. 4,40,00,000/- being the Working Capital Demand Loan No. 1 and Rs. 9,60,00,000/- being the Working Capital Demand Loan No. 2 from the Financial Creditor for a further period of 12 months, which was duly sanctioned vide a sanction Letter dated 31st March, 2017 for 12 months on the terms and conditions morefully mentioned in the said Sanction Letter. A copy of the sanction letter date 31st March, 2017 is annexed as Annexure-T. 19. It is submitted that by a Revival Letter dated 18th April, 2017 by the Corporate Debtor and its guarantors, they have admitted and acknowledged their dues to the Financial Creditor in respect of the credit facility on 26th February, 2016. In the said Letter they also agreed to be liable for the payment of all the outstanding to the Financial Creditor. The said acknowledgement has been made for the purpose of Section 18 of the Limitation Act, 1963. A copy of the Revival....
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.... dated 01/10/2018 along with the postal receipts is annexed as Annexure-AA. The Financial Creditor has also filed Working of computation of the amount/ledger of the applicant showing the money due, annexed with the petition as Annexure-BB. 27. It is submitted that the Financial Creditor secured its loan by creating mortgage of Two properties belonging to the Corporate Debtor. Property 1: Mortgage of land and structure thereon belonging to Mr. Shiba Sardar alias Mr. Shib Sardar having clear and marketable title, situated at District Nadia, police station & Sub Registry: Shantipur, Touzi: 9 No., Mouza Govindpur, JL No. 32, LR Khatian No. 1785, RS/LR/Dag No. 2122, 2090, 2072 admeasuring 363 Decimals i.e. 3.63 Acres of land together with structure about 500 square feet. Property is butted and bounded by on the North: NH34, On the East: property of Sri Kalidas Sardar, On the South: Panchayat Road, On the West: property of Sri Sunil Bose. Valued Rs. 3,39,30,000/-. Property 2: Mortgage of Land and structure thereon belonging to Well Build Plaza Pvt. Ltd. having clear and marketable title situated at Mouza Bishnupur, JL No. 106, R.S. Khaitan No. 594 & 566, R.S. No. 57, Dag No. 158/373, ....
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....agreement dated 12th August, 2015, the Capping letter dated 3rd September, 2015, Sanction letter dated 22nd February, 2016 and other letters stated to have been annexed by the Financial Creditor are beyond the period of limitation and therefore, the petition is not maintainable. The Corporate Debtor has therefore submitted that the petition is not maintainable. 31. During the course of arguments, Ld. Counsel for the Financial Creditor submitted that the sanction letter for Working Capital Credit Facility of Rs. 5,00,00,000/- was for a period of 12 months from the date of sanction letter dated 5th May, 2015. It is further submitted that the agreement for Working Capital Demand Loan for grant of credit facility of Rs. 5,00,00,000/- was entered into on 25/05/2015 pursuant to the sanction letter dated 5th May, 2015 followed by Addendum Sanction Letter dated 27/08/2015 for reduction of existing Rs. 60,00,000/- from the existing Rs. 5,00,00,000/-. It is further submitted by the Ld. Counsel for the Financial Creditor that Sanction Letter dated 22/02/2016 renewing and enhancing the existing Working Capital Loan facility from the earlier Rs. 4,40,00,000/- to Rs. 14,00,00,000/-. It is furth....
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....ation is concerned, the Corporate Debtor has contended that the application has been filed against the Respondent without any cause of action. 35. Ld. Counsel for the Financial Creditor has submitted that this statement of the Corporate Debtor has been made without any basis. It is submitted that the petition is supported by Facility Agreement entered into between the parties and also supported by relevant documents, including the revival letters, the security documents and all the other ancillary documents executed by the parties. It is submitted that vide letter dated 28th April, 2017, the Corporate Debtor has acknowledged the total amount of loan of Rs. 14 Crores availed by them and as such executed necessary documents to that effect. It is submitted that pursuant thereto the Corporate Debtor has committed default, in consequence whereof, the Financial Creditor has terminated the Loan Agreement vide Demand Notice dated 1st October, 2018 (page 401 of the petition) and demanded the entire outstanding on that date, hence the default has occurred on 1st October 2018. 36. It is submitted that the Bank account statements clearly indicate that the last payment received by the Financi....
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....2017-18/10419, who has consented vide his affidavit and Form-2, and submitted that he has agreed to accept the appointment as IRP if an order admitting the present application is passed by this Adjudicating Authority. He has further submitted that no disciplinary proceedings are pending against him with the Board or Institute of Insolvency Professionals of ICAI. 40. In view of the aforesaid pleadings and documents mentioned therein, and after hearing Ld. Counsel for the parties, it is very clear that the last payments having been made by the Corporate Debtor on 14th June, 2018 and 19th September, 2019, in Working Capital Demand Loan-II and Working Capital Demand Loan-I respectively, and the petition having been filed on 11/02/2020, the petition is very much within the period of limitation. It is also clear that in spite of the demand notice having been sent by the Operational Creditor on 1st October, 2018, in accordance with the terms and conditions of the Facility Agreements, and since the Corporate Debtor has committed default and has failed to clear its liability of financial debt towards the Financial Creditor, it is liable to be proceeded against accordingly. 41. We are, the....