TaxTMI 
TaxTMI 
2022 (7) TMI 238
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....the ground that the Financial Creditor had advanced several cash and credit facilities ('Credit facility' or 'Loan') to the Corporate Debtor. 4. The total amount to be claimed in default by the Financial Creditor is Rs.90,46,34,744.71/- (Rupees Ninety Crore Forty Six Lakh Thirty Four Thousand Seven Hundred Forty Four Hundred and Seventy One Paisa only) including interest as on 01 August, 2019. 5. It is submitted in the Petition, Part - II that the authorised share capital of the Corporate Debtor is Rs.5,00,00,000/- (Rupees Five Crores only) with paid up Capital as Rs.4,93,90,000/- (Rupees Four Crore Ninety Three Lakh Ninety Thousand only). Submissions by the Ld. Counsel appearing on behalf of the Financial Creditor 6. The Financial Creditor had granted several creditor and cash facilities to the Corporate Debtor and the Corporate Debtor defaulted in repayment of such facilities. The debt amounting to Rupees 90,46,34,744.71/- (Ninety Crore Forty Six Lakh Thirty Four Thousand Seven Hundred Forty Four and Seventy One Paise only) as on 01/08/2019 for the accounts- '135655100000310', '7005671200000028','7005631500000019','7005631500000028','7005631500000 037', '7005631500000046', '7....
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....name of the Corporate Debtor with the Financial Creditor with extended Timelines. Submissions by the Ld. Counsel appearing on behalf of the Corporate Debtor 12. As alleged by the Financial Creditor, the account of the Corporate Debtor was classified as NPA on 31 March, 2013 but there is no allegation of default in the application anywhere. Subsequently, by way of a supplementary affidavit, the Financial Creditor has alleged the default as on 16 November, 2012. 13. It is pertinent to mention that the default could not have taken place on 16 November, 2012 because as per the sanction letter dated 06 February, 2012 the loan account would be due for repayment before 24 January, 2013. There is no evidence to substantiate that the default was on 16 November, 2012. 14. For a statement of Accounts to be admissible before the Court, it has to be in accordance with the Bankers Book of Evidence Act, 1891. But the Financial Creditor has failed to establish that the statements of accounts are in accordance with the Bankers Book of Evidence Act. 15. Reliance has been placed on Sampuran Singh v. Niranjan Kaur (AIR 1999 SC 1047), Vashdeo R. Bhojwani v. Abhyudaya Co-operative Bank Limited & An....
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.... as filed by CD) 22. In Laxmi Pat Surana V. Union Bank of India & Anr, decided on March 21, 2021, the Hon'ble Supreme Court has held that. "37. Ordinarily, upon declaration of the loan account/debt as NPA that date can be reckoned as the date of default to enable the financial creditor to initiate action under Section 7 of the Code. However, Section 7 comes into play when the corporate debtor commits "default". Section 7, consciously uses the expression "default" not the date of notifying the loan account of the corporate person as NPA. Further, the expression "default" has been defined in Section 3(12) to mean non-payment of "debt" when whole or any part or instalment of the amount of debt has become due and payable and is not paid by the debtor or the corporate debtor, as the case may be. In cases where the corporate person had offered guarantee in respect of loan transaction, the right of the financial creditor to initiate action against such entity being a corporate debtor (corporate guarantor would get triggered the moment the principal borrower commits default due to non-payment of debt. Thus, when the principal borrower and/or the (corporate) guarantor admit and acknowled....
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....fault is more than the minimum amount stipulated under section 4 (1) of the Code, stipulated at the relevant point of time. 26. Accordingly, it is, hereby ordered as follows:- (a) The application bearing CP (IB) No. 1712/KB/2019 filed by IDBI Bank, the Financial Creditor, under section 7 of the Code read with rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP against Dutta Agro Mills Private Limited, the Corporate Debtor, is admitted. (b) There shall be a moratorium under section 14 of the IBC. (c) The moratorium shall have effect from the date of this order till the completion of the CIRP or until this Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 of the IBC or passes an order for liquidation of Corporate Debtor under section 33 of the IBC, as the case may be. (d) Public announcement of the CIRP shall be made immediately as specified under section 13 of the Code read with regulation 6 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. (e) Mr. Pankaj Kumar Tibrewal, registration number IBBI/IPA-001....