TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 627
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....spondents : Mr. Dipankar Das and Ms. Sanjana Nandi, Advocates for R-1. Mr. Aditya Gauri and Mr. Amar Vivek, Advocates for RP. JUDGMENT ASHOK BHUSHAN, J. This Appeal by Suspended Director of the Corporate Debtor has been filed challenging order dated 02.02.2024 passed by National Company Law Tribunal, Division (Special) Bench, Court No.II, Kolkata, admitting Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the "IBC") filed by the Canara Bank, the Financial Creditor. 2. Brief facts necessary to be noticed for deciding the Appeal are: (i) The Canara Bank sanctioned Cash Credit Limit of Rs.6 crores and FLC of Rs.4 crores, totaling Rs.10 crores to the Corporate Debtor on 28.08.2016. Wor....
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....e Bank shall take steps under the IBC. (vi) No payments having been made, Section 7 Application was filed by the Financial Creditor, claiming a debt of Rs.13,78,35,737.34/- as on 31.08.2022, mentioning the date of default as 14.02.2020. Notice was issued in Section 7 Application, to which reply was filed by the Corporate Debtor. Rejoinder affidavit was also filed by the Canara Bank. (vii) The Adjudicating Authority vide order dated 02.02.2024 admitted Section 7 Application holding that debt and default has been proved by the Financial Creditor. The Suspended Director of the Corporate Debtor aggrieved by the admission of Section 7 Application has come up in this Appeal. 3. We have heard Shri Abhijeet Sinha, learned Senior Counsel appear....
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....ellant, submits that date of NPA being 14.02.2020, there is no question of Application being barred by Section 10A. The fact that renewal of Sanction was granted for one year on 26.07.2019, in no manner shall make the date of default as 25.07.2020, as contended by the Appellant. The Corporate Debtor was sanctioned usance period of 180 days since inception. The Corporate Debtor's account was declared NPA due to default committed by the Corporate Debtor. The Financial Creditor served upon the Corporate Debtor several notices including the notice under Section 13, sub-section (2) of the SARFAESI Act. The Appeal, which was filed in the Calcutta High Court by M/s Rajgaria Timber Private Limited has nothing to do with the Financial Creditor as th....
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....ncial Creditor was fully entitled to file Section 7 Application, treating the date of default as 14.02.2020. The Hon'ble Supreme Court in Laxmi Pat Surana vs. Union Bank of India and Anr. - (2021) 8 SCC 481 in paragraph 43 has held following: "43. 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 IBC. 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 whol....
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....wal df Your working capital limit under consortium banking arrangement With reference to the above, the competent authority has sanctioned the renewal of working capital Limits to be valid for one year from oi date of sanction i.e., upto 25.07.2020 to M/s Ananya Wood Private Limited under consortium banking arrangement lead by State Bank of India on the terms and conditions mentioned below. A fresh and complete set of credit proposal shall be sent to us at least 45 days before the expiry of the limits, to enable us to consider renewing the limits. Any breach in any of the terms and conditions relating thereto will be considered unauthorised. (Rs. in Crore) Facility Limit ROI/Commn. Margin Security SODH 6.00 1 year MCLR....
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....is 25.07.2020, has no basis and is to be rejected. 11. The learned Counsel for the Appellant has referred to Writ Petition filed and the Appeal filed in the Calcutta High Court. The learned Counsel for the Appellant has referred to order dated 19.10.2020 passed in APO/111/2020, which was an Appeal filed by M/s Rajgaria Timber Pvt. Ltd. & Ors. vs. State Bank of India & Ors., challenging order of learned Single Judge dated 25.09.2020. The Calcutta High Court vide order dated 19.10.2020 has only directed the SBI to decide the issue with regard to entitlement of the appellants to 270 days' credit. It is contended that the said issue is pending consideration by the SBI. The said order passed by the Calcutta High Court has no relevance with rega....