TaxTMI 
TaxTMI 
2024 (3) TMI 1237
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....under Section 7 of the Insolvency & Bankruptcy Code, 2016 (in short 'Code') was admitted and the Corporate Insolvency Resolution Process (in short 'CIRP') was initiated. 2. Mr. Amit Kumar Kolay is the Appellant herein who was the Designated Partner of Suryadeep Multipurpose Cold Storage LLP (in short 'Corporate Debtor') 3. Heard the Counsel for the Parties and perused the records made available including the cited judgements. 4. The undisputed fact of the case is that the around 2012, the Corporate Debtor requested for credit facilities including the terms loan, cash credit facility and bank guarantee for an overall limit of Rs. 8.01 Crores from the Respondents which was sanctioned on 26.09.2012. It has been brought out that this overall credit facilities limit was enhanced/ renewed/ modified from time to time, based on the request of the Corporate Debtor and finally overall limit was sanctioned on 26.09.2019 of Rs. 20.78 Crores comprising of Terms Loan - I, Term Loan - II, cash credit limit and bank guarantee. 5. The Appellant stated that while utilising the credit facilities, business of the Corporate Debtor suffered due to recession and poor market conditions and the....
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.... as NPA unless the subsequent stipulated period got over on account of default. 12. The Appellant argued that servicing of monthly interest was also covered under moratorium of 7 months so the same could arise only from December 2019 and not any time before, hence the Impugned Order is wrong and unlawful. 13. The Appellant stated that in interim period after restructuring approval on 30.03.2019, the Corporate Debtor made certain payments of interest on its own, reflecting the Corporate Debtor's good intentions which cannot be held against it presuming as acknowledgment of debts. 14. The another plea taken by the Appellant is regarding CIBIL Report which was enclosed by the Respondent along with the application filed under Section 7 of the Code before the Adjudicating Authority, whereas it can be found that loan account mentioned by the Respondent in the applications were standards till August 2019. 15. The Appellant argued that it would be travesty of justice if the accounts of the Corporate Debtor are declared as NPA one day after restructuring which will hit the Corporate Debtor, a MSME entity, adversely which is not intent of the Code. 16. The Appellant reiterated....
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....e as usual. 25. The Respondent mentioned that the Corporate Debtor failed to pay the interest amount towards the said term loans as well as the cash credit facilities, due to which the loan account of the Corporate Debtor were classified as NPA on 30.09.2019 in terms of RBI Prudential Norms. 26. The Respondent submitted that the Appellant is unnecessarily trying to mislead this Appellate Tribunal by incorrect and wrong interpretation of the terms and conditions of restructuring sanction letter dated 30.03.2019 qua the moratoriums servicing of interest. 27. The Respondent strongly pleading that sanction letter is absolutely clear with specific clauses which provided that "interest will be served on monthly basis as and when applied" which makes it certain and specific that there was no moratorium on interest payments and the interest was to be paid on monthly basis. 28. The Respondent submitted that the Appellant, although knew the exact terms and conditions and its meaning/implications, however, due to wrong intentions for not making payments, took shelter of so-called assumed misinterpretations of moratorium on interest portion. 29. The Respondent brought out that a....
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....asis. 35. The Respondent also submitted that the Corporate Debtor also failed to pay interest on cash credit account and default agreed on 20.04.2019. 36. The Respondent submitted that due to continued failure of the Corporate Debtor, the demand notice dated 04.02.2020 was sent to the Corporate Debtor calling him to pay Rs. 19,21,23,253/-. However, despite giving flexibility of 14 days for such repayment, the Corporate Debtor failed to make any payment and thereafter the Respondent was constrained to file Section 7 application before the Adjudicating Authority. 37. Concluding the arguments, the Respondent submitted that the Impugned Order has taken into account all the facts and legal position into consideration and there was no ambiguity regarding defaults or date of default and as such the defence of the Appellant are moon shine defence. 38. The Respondent requested this Appellate Tribunal to dismiss this Appeal with exemplary costs. Finding 39. We have already noted all the facts regarding the relationship between the Corporate Debtor and the Financial Creditor i.e., the Respondent as such, we would like to take these facts on record and not reiterate the same ....
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....ring of the Respondent Bank applicable to all MSME customers including the Corporate Debtor herein. It is also worth mentioning that restructuring letter of the Respondent dated 30.03.2019 was in accordance with their policy letter. 46. From various documents noted above, we observe that the Corporate Debtor requested for restructuring benefit being MSME and the Respondent sanctioned the same vide sanction letter dated 30.03.2019 as per their guidelines dated 15.01.2019 applicable to all MSME including the Corporate Debtor. We have taken into consideration the pleadings of the parties and note that for restructured Funded Interest Terms Loan ( in short 'FITL') and Working Capital Term Loan ( in short 'WCTL'), moratorium was indeed allowed, however the said moratorium was only for principal amounts and not for interests whereas the Appellant has taken the plea that the moratorium was blanket for both principal amount as well as for the interest component and therefore, the moratorium was absolute. 47. We have taken into account that the loan accounts of the Corporate Debtor were classified as NPA on 30.04.2018 due to defaults by the Corporate Debtor, however, these accounts....
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....h credit is to be treated as out of order if the outstanding balance remains continuously in excess of sanction limit. The Corporate Debtor, having not deposited the interest from time to time, defaulted and outstanding balance remained continuously in excess of sanction limit, entitling the Respondent bank to classify the loan accounts of the Corporate Debtor as NPA. 53. As regard the arguments of CIBIL Report, it has been clarified that the account was standard till August 2019 and irregularity happened in September, 2019 when the account became sub-standard and the same is dully reflected in CIBIL Report. 54. Therefore, we do not find any strength in the arguments of the Appellant regarding alleged wrong date of defaults which has been consciously elaborated in the Impugned Order. 55. As regard the issue of no default by the Corporate Debtor as claimed by the Appellant, we note from the restructuring sanction letter dated 30.03.2019 that for Term Loan-I and Term Loan-II, the instalments would start from December 2019 and end on March 2029 with the moratorium for 7 months and restructured FITL, WCTL-I and WCTL-II were to commence on May 2020 with 12 months moratorium.....
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....6-Sep-2012 27-Sep-2012 27-Sep-2012 27-Sep-2012 28-Sep-2012 28-Sep-2012 30-Sep-2012 06-Oct-2012 08-Oct-2012 08-Oct-2012 09-Oct-2012 09-Oct-2012 12-Oct-2012 16-Oct-2012 19-Oct-2012 20-Oct-2012 25-Oct-2012 30-Oct-2012 425276210000025 Loan Disburseme Loan Coll. From 425220110000127 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 425276210000025: Normal Int.Coll 30-Oct-2012 Loan Coll. From 425220110000127 31-Oct-2012 01-Nov-2012 07-Nov-2012 12-Nov-2012 425276210000025 Loan Disburseme Loan Coll. From 425220110000127 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 12-Nov-2012 17-Nov-2012 17-Nov-2012 17-Nov-2012 23-Nov-2012 REVERSAL 23-Nov-2012 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 425276210000025 Loan Disburseme 25,00,000.00 60,54,000.00 17,70,000.00 1,70,000.00 7,67,000.00 27,69,000.00 ....
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....0-Mar-2019 425276210000025: Penal Int. Coll: 425276210000025: Normal Int.Coll 425276210000025: Penal Int.Coll: 30-Mar-2019 WCTL I 30-Mar-2019 29-Dec-2018 Loan Recovery From: 4252301100 29-Dec-2018 Loan Recovery From: 4252301100 29-Dec-2018 Loan Recovery From: 4252101100 29-Dec-2018 Ac xfr from gl 50015^ to ^5001 29-Dec-2018 Ac xfr from gl ^50015^ to ^5001 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 11-Jan-2019 30-Jan-2019 30-Jan- 2013 30-Jan-2019 -Jan-2013 22-Feb-2019 22-Feb-2019 27-Feb-2019 425276210000025: Normal Int.Coll 425276210000025: Penal Int.Coll: 425276210000025: Normal Int.Coll 425276210000025: Penal Int.Coll: 425276210000025: Normal Int. Coll 425276210000025: Penal Int. Coll: BY CASH-4252-SERAMPORE 425276210000025: Normal Int. Coll 425276210000025: Penal Int.Coll: BY CLG-SBI- L 816816 BY CASH-4252-SERAMPORE AMIT KUMAR KOLAY 2,21,99,931.99 2,51,793.00 13,079.00 2,47,800.00 11,255.00 2,43,671.00 51,86,825.00 9,40,000.00 2,32,94,223.99 2,23,54,223.99 1,54,292.00 2,21,99,931.99 ....
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....12204 WEST BENGAL, INDIA CUSTID A/C No. TYPE BRANCH CURRENCY IFSC Code MICR Code :124073303 :425276210000026 : AGRICULTURE - TL (NEI) :INR : BKID0004252 : 700013053. Statement of Account from 17-08-2016 to 15-01-2020 Date 17-AUG-2016 B/F 17-Aug-2016 STAMP DOC. Description CHGS 17-Aug-2016 PP CHGS, TEV CHG, DOC, INSPE, CIBIL Loan Coll. From 425220110000127 18-Aug-2016 19-Aug-2016 24-Aug-2016 Loan Coll. From 425220110000127 425276210000026 Loan Disburseme 425276210000026 Loan Disbursene 24-Aug-2016 25-Aug-2016 425276210000026 Loan Disburseme 25-Aug-2016 425276210000026 Loan Disburseme Instr. No. Debits Credits Balance 425276210000026 Loan Disburseme 425276210000026 Loan Disburseme 08-Sep-2016 425276210000026 Loan Disburseme 08-Sep-2016 425276210000026 Loan Disburseme 25-Aug-2016 425276210000026 Loan Disburseme 42527621000000 425276210000026 Loan Disburseme 425276210000026 boa Disburseme 25-Aug-2016 26-Aug-2016 425276210000026 Loan Disburseme 26 -Aug-2016 425276210000026 Loan Disburseme 26-Aug-2016 425276210000026 Loan Disburseme ....