TaxTMI 
TaxTMI 
2021 (9) TMI 1395
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.... changed to "Chadalavada Infratech Ltd.", vide Certificate of Change of Name issued by Registrar of Companies. 3. The Corporate Debtor is, inter alia, engaged in the business of all types of infrastructure projects including power project facilities or works and to build, construct, install, erect, undertake, lay down, commission, establish, own, operate, mange, control and administer, lease, travel, all infrastructure parks, gardens, roads, bridges, flyovers, highways, runways, structures and facilities, railroads, etc. and also to carry on the business of electrical engineers, contractors, etc. 4. The Corporate Debtor had approached the Financial Creditor for sanction of fund-based and non-fund based credit limits and the Financial Creditor had considered favourably and sanctioned cash credit limits and enhanced credit limits from time to time as under: Irregularity-first instance: 5. When Bank Guarantees were invoked the accounts became irregular and the Cash Credit account of the Corporate Debtor was classified as NPA on 15.04.2011. The Corporate Debtor had requested vide letter dated 18.07.2011 to allow it to operate the accounts within Rs. 1,85,29,00,000/-, while ....
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....OR: 12. The Financial Creditor has filed Written Submissions dated 28.07.2021 contending that the present petition satisfies all the ingredient of section 7 of the I & B Code, 2016, namely: (a) Debt as defined under section 3(11) of the I & B code, 2016: Statements of loan accounts filed with the petition establish the debt and default committed by the Corporate Debtor. (b) Default as defined under section 3(12) of the I & B code, 2016: Corporate Debtor acknowledged the debt and default by virtue of the loan documents executed on 03.02.2016 by the Corporate Debtor and OTS letters dated 19.09.2018, 09.11.2018 and 15.07.2019. (c) Filing of application under section 7(1) of the I & B code, 2016: Financial Creditor satisfies all the ingredients of section 7(1) of the Code. (d) Proposed Insolvency Resolution Professional: Financial Creditor has proposed the name of IRP in Part-III of the application. 13. The Financial Creditor has relied on the following judgments in support of its case: (i) M/s. Sanjay Lamba Vs. Union Bank of India & others, rendered by the Hon'ble NCLAT in Company Appeal (AT) (I....
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..... Thus, the limitation period ended in 2014 and the application is beyond the limitation period and the application is barred by Article 137 of the Limitation Act. 15. The Corporate Debtor has analysed the basic principles of limitation and how they apply to the I & B Code in clauses (a) to (j) of para 4 of the Written Submissions and also relied on the following judgments on the point of limitation itself. (i) B.K. Educational Services Limited Vs. para Gupta and Associates, reported in 2019 (11) SCC 633. Paras 34, 36 and 42. (ii) Babulal Vardharji Gurjar Vs. Gurjar Aluminium Industries (P) Ltd., reported in 2020 (15) SCC 1. Paras 34.1 and 35.1. (iii) Sagar Sharma and another Vs. Phonex ARC Private Limited and another, reported in 2019 (10) SCC 335, wherein the Hon'ble Apex Court held that, "We may point out that an application under section 7 of the Code does not purport to be an application to enforce any mortgage liability." (iv) V. Padmakumar Vs. Stressed Assets Stabilisation Fund (SASF) & another, in Company Appeal (AT) No. 57 of 2020, by the Hon'ble NCLAT. Para 13. Held. "13. The aforesaid decisions of ....
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....he matter of considering this application under section 7 of the I & B Code, 2016. At the time of admission of the petition filed under section 7 of the I & B Code, the Tribunal has to consider whether there is debt and default. Other contentions raised by the learned counsel for the Corporate Debtor cannot be entertained since the Financial Creditor is able to establish the debt and default. After going through the documents filed by the petitioner we are of the view that the petition is liable to be admitted against the Corporate Debtor. 23. Hence, the Adjudicating Authority admits this Petition under Section 7 of IBC, 2016, declaring moratorium for the purposes referred to in Section 14 of the Code, with following directions:- (A) Corporate Debtor, M/s. Chadalvada Infratech Limited is admitted in Corporate Insolvency Resolution Process under section 7 of the Insolvency & Bankruptcy Code, 2016. (B) The Bench hereby prohibits 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; transferring, encu....
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....Bankruptcy Code. (I) Proposed IRP filed Form-2 issued by the Institute of Insolvency Professionals. His Authorisation for Assignment is valid 02.12.2021. This information is also available in IBBI Website. Thus, there is compliance of Regulation 7A of IBBI (Insolvency Professionals) Regulations, 2016, as amended. Therefore, the proposed IRP is fit to be appointed as IRP since the relevant provision is complied with. 24. Registry of this Tribunal is directed to send a copy of this order to the Registrar of Companies, Hyderabad for marking appropriate remarks against the Corporate Debtor on website of Ministry of Corporate Affairs as being under CIRP. 25. Accordingly, this Petition is admitted. ============= Document 1 Vide sanction Cash Credit limit Rs. Bank Guarantee Advice dated 08.02.2006 limit Rs. 1,50,00,000 5,50,00,000 Letter of credit Rs. Total credit limit Rs. 7,00,00,000 2,50,00,000 7,90,00,000 5,00,00,000 15,40,00,000 01.012.2006 (enhanced limits) 10.10.2007 (enhanced limit) 05.05.2008 (enhanced limit) 14.05.2009 (enhanced limit) 08.10.2010 (enhanced limit) 3....