TaxTMI 
TaxTMI 
2023 (4) TMI 1297
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....cation has been filed by Beacon Trusteeship Limited (Viz., the Financial Creditor/Applicant herein). The Financial Creditor is a Public Limited Company. The Affidavit verifying the Application is placed at page No. 31-32 of the Application typeset and the same authorizes Ms. Anuja Parab, the Authorized signatory of the Applicant Financial Creditor. 3. Part II of the Application lays down the details of the Corporate Debtor from which it is seen that the Corporate Debtor is a Private Limited company incorporated under the Companies Act, 1956 on 31.03.1993 with CIN:U65993TN1993PTC024724. The registered office of the Corporate Debtor as per the Application is at ASK Building, 1st Floor, Room No. 2, Old No. 44, New No. 57, C P Ramaswamy Road, Abhiramapuram, Chennai, Tamil Nadu - 600 018. 4. From Part-III of the Application, it is seen that the Financial Creditor has proposed the name of one Mr. Vishal Ghisulal Jain with Registration No. IBBI/IPA-001/IP-P00419/2017-18/10742 (AFA valid till 02.01.2024) as the Interim Resolution Professional (IRP). 5. From Part-IV of the Application, it is seen that the Financial Creditor has claimed a sum of Rs. 246,88,00,000/- (RUPEES TWO HUNDR....
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....he Debenture Holder vide its Letter dated 13.10.2020 recalled the said loan advanced to the Corporate Debtor and called upon the Corporate Debtor to plan repayment of the entire outstanding dues as soon as possible. 10. In response to the said recall notice issued by the Debenture Holder, the Corporate Debtor herein, issued a letter dated 28.10.2020, inter alia, stating that the Corporate Debtor would not be able to repay its outstanding dues in a short time, however, proposed conversion of the said loan into secured Non-convertible Redeemable Debentures in order to secure the repayment of the principal sum of Rs. 200,00,00,000/- (Rupees Two Hundred Crores Only) on certain terms and conditions. 11. Accordingly, the Debenture Holder referring to the said proposal of the Corporate Debtor addressed a letter dated 31.10.2020 giving a counter proposal to the Corporate Debtor for conversion of the said loan into secured Debentures accruing interest and to be redeemed before 31.12.2021. 12. The Corporate Debtor vide its Letter dated 02.11.2020 to the Debenture Holder, sought time to examine the viability of the proposal of the Debenture Holder. 13. After deliberation on the pr....
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.... by and between the Financial Creditor and the Corporate Debtor, inter alia, appointing the Financial Creditor as the Debenture Trustee pursuant to the provisions of Section 71(4) of the Companies Act, 2013, for the benefit of the Debenture Holder. The said Agreement also obligates the Corporate Debtor to execute a Debenture Trust Deed in terms of the Companies Act, 2013 and other applicable laws/regulations within the time as specified under the Act and also all other necessary documents as may be required under the Disclosure Document/Term Sheet. 17. The Corporate Debtor, in compliance with its obligations under the Debenture Trust Agreement, executed with the Financial Creditor, a Debenture Trust Deed dated 16th February, 2021. The relevant terms of the said Deed are being reproduced hereunder for ready reference of this Tribunal: DEFINITIONS "Repay shall include "Redemption and vice versa and repaid repayable, repayment, redeemed, redeemable and redemption shall be construed accordingly" "Secure Obligations" shall mean all obligation at any time due, owing or incurred by the Company to the Debenture Trustee and the Debenture Holders in respect of t....
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....has not only admitted its liability of repayment of debt due to the Debenture Holder but also admitted to payment of interest etc. 20. Further, Clause 8.3 of the said Debenture Trust Deed stipulates to occurrence of events that shall constitute as an "Event of Default" and includes default occurred in the redemption of Debentures, as and when the same shall have become due and payable as an Event of Default. 21. Clause (iii) of the FIRST SCHEDULE to the Debenture Trust Deed provides that the Corporate Debtor agrees and undertakes to redeem the Debentures on 31.12.2021 or as per the Prepayment Plan and in case of prepayment date of Redemption shall be construed accordingly. 22. In addition to the aforesaid Debenture Trust Agreement and the Debenture Trust Deed, the Corporate Debtor herein also executed a Deed of Hypothecation dated 16.02.2021 in favour of the Financial Creditor herein, inter alia, creating charge by way of floating exclusive charge on all current assets, investments, receivables, book debts, both present and future, movable properties, other than those charged/in favour of Yes Bank Limited in the form or manner acceptable to the Debenture Holder. 23. The....
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....stee and that a Debenture Trust Agreement was executed on 17.12.2020. Respondent stated that they were undergoing financial crisis which further deteriorated with the advent of COVID-19 pandemic and that the business activities of the Corporate Debtor have suffered. Corporate Debtor further stated under para 4 of the reply that on account of inability of the Corporate Debtor to repay the said loan, an arrangement was reached between the Corporate Debtor and the Debenture Holder, wherein the Debenture Holder agreed to convert the said loan into secured Non-convertible Redeemable Debentures for securing the repayment of the principal sum of Rs. 200 Crores accruing interest at the rate of 12%. Corporate debtor further admitted that it is unable to repay the Debentures under para 5 of the reply. The sum and substance of the reply by the corporate debtor is that they admit the loan/issue of debentures, admit the default and for which they state that it is due to financial crisis. 28. Heard the submissions made by the Learned Counsel for both the parties and perused the records including the pleadings placed on record. This Tribunal after comprehensively hearing the said matter is of ....
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.... satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that the "debt", which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the order passed to the financial creditor and corporate debtor within 7 days of admission or rejection of such application, as the case may be. 30. On the other hand, as we have seen, in the case of a corporate debtor who commits a default of a financial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the financial creditor to satisfy itself that a default has occurred. It is of no matter that the debt is disputed so long as the debt is "due" i.e. payable unless interdicted by some law or has....
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....period in terms of Section 14(2) and 14(3) as extracted hereunder; (2) The supply of essential goods or services to the Corporate Debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period. (2A) Where the interim resolution professional or resolution professional, as the case may be, considers the supply of goods or services critical to protect and preserve the value of the Corporate Debtor and manage the operations of such Corporate Debtor as a going concern, then the supply of such goods or services shall not be terminated, suspended or interrupted during the period of moratorium, except where such Corporate Debtor has not paid dues arising from such supply during the moratorium period or in such circumstances as may be specified. (3) The provisions of sub-section (1) shall not apply to (a) such transactions, agreements or other arrangement as may be notified by the Central Government in consultation with any financial sector regulator or any other authority; (b) a surety in a contract of guarantee to a corporate debtor. 34. The duration of period of moratorium shall be as provided in Sec....