TaxTMI 
TaxTMI 
2023 (6) TMI 1488
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....87/- [(Rupees One Hundred Nine Crore Thirty Three Lakh Seventy One Thousand Six Hundred Three and Eighty Seven Paise Only) Rs. 87,60,91,332.43/- of principal amount along with Rs. 21,72,80,271.44/- of Interest amount] as on 31.08.2022. 2. The Applicant is a Public Sector Bank established under the State Bank of India, Act, 1955. The State Bank of Indore got merged with the State Bank of India in the year 2010. The State Bank of Hyderabad, the State Bank of Patiala, the State Bank of Mysore, the State Bank of Bikaner and Jaipur and the State Bank of Travancore were associated banks of the State Bank of India and with effect from 01.04.2017, the aforesaid associated bank got merged with the State Bank of India. Therefore, all the rights and liabilities of the aforesaid banks got vested with the State Bank of India. 3. The Respondent Company was incorporated on 22.04.1978, as a Company Limited by Shares (Non- govt. Company) having CIN: U31101DL1978PTC191934, under the erstwhile Companies Act, 1956 with the Registrar of Companies, NCT of Delhi and Haryana. The Authorised Share Capital of the Respondent Company is Rs. 12,00,00,000/- (Rupees Twelve Crore Only) and the Paid-up Share Cap....
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....ipline, resultant, the loan accounts of the Corporate Debtor were classified as NPA ("Non-performing Asset") on 11.11.2020 in accordance with the RBI Circulars and Guidelines. The Corporate Debtor assured the Financial Creditor that it shall make payments of the outstanding amounts, however, despite several assurances, the Corporate Debtor did not make the payments of the outstanding amounts, resultant, the Financial Creditor/Applicant issued Letter/Notice dated 21.05.2021 to the Corporate Debtor informing about the factum of NPA and calling upon the Corporate Debtor to make payment of the outstanding amounts plus unapplied interest. The Financial Creditor/Applicant also issued a Demand Notice dated 18.06.2021 to the Corporate Debtor/Respondent under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) demanding Rs. 96,36,96,693/- as on 17.06.2021 along with interest. The Corporate Debtor responded to the Demand Notice dated 18.06.2021 through its objections dated 16.08.2021, received on 19.08.2021, which were duly responded to/disposed of by the Applicant by its Letter dated 31.08.2021. e) Despit....
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...., only on 11.11.2020 is well within the boundaries of extension of the suspension as provided by the abovementioned notification under Section 10A of the Code. It is submitted that in accordance with Section 10A of the Code r/w Notification F. No. 30/33/2020-Insolvency, dated 24.09.2020, the said Petition is untenable in law, and admissibility of the same will be in Contravention of Section 10A of the Code. d) It is submitted that on 08.09.2020 several loan agreements were executed between the Petitioner and Respondent in respect of credit facilities availed by the Respondent. Following are the documents executed in respect of the credit facilities in concern:- 1. Sanction/Arrangement Letter 2. Inter se Agreement between Petitioner, Respondent and Punjab National Bank 3. Deed of Hypothecation. e) It is further submitted that the present petition has been filed under the authority of Mr. Shiv Shekher Narayan, such delegation of the authority having its source in the Notification in the Gazette of India dated 02.05.1987. It is submitted that Mr. Shiv Shekher Narayan was not the sanctioning authority in respect of the abovementioned credit facilities and the execution of the....
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....olour code) along with the date of default as 14.08.2020. Therefore, we are satisfied that there exist debt and default and the same is corroborated by the IU certificate filed along with the application. We would now refer to the Regulation 21 and Table-1 & 2 of the Insolvency and Bankruptcy Board of India (Information Utilities) (Amendment) Regulations, 2022 dated 14th June, 2022 which read as follows: Regulation 21 "(3) On completion of the process under sub-regulation (2), the information utility shall record the status of authentication of information of default as indicated in the following Tables": Table-1 S. No Response of the Debtor Status of Authentication Colour of the Status (1) (2) (3) (4) 1 Debtor confirms the information of default Authenticated Green 2 Debtor disputes the information of default Disputed Red 3 Debtor does respond even after three reminders Deemed to be Authenticated Yellow "Provided that in case of Financial Creditors which are banks included in the second schedule of the Reserve Bank of India Act, 1934, the information utilities will record the status of authentication of information default as indicated in the Table 2 Bel....
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....ate Debtor, as the case may be. " In view of the above, the date of NPA is relevant only for the purposes of limitation as the right to apply first accrues, however, in this case, the trigger to file the Section 7 Application arose when the CD failed to make payment of the entire loan plus interest by 17.08.2021. Thus, the effective 'Date of Default' in this case is 17.08.2021. The cases relied upon by the CD are of no consequence to the facts at hand and are not attracted in view of the judgment of the Hon'ble Supreme Court in Laxmi Pat Surana (supra). iv. In view of the facts and circumstances mentioned hereinabove, it is clear that financial debt was disbursed by the Applicant to the Corporate Debtor against consideration of the time value of money and thereafter the same has remained due and payable. Admittedly, the failure to adhere to the term by the Corporate Debtor for repayment of the interest and the principal amount, establishes the default in repayment of the said financial debt. This position in the instant case is a fit case for the commencement of CIRP of the Corporate Debtor in terms of Section 7(5)(a) of the Code. v. A certificate under Section 2-....
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....y the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) The recovery of any property by an owner or lessor, where such property is occupied by or in the possession of the corporate debtor. [Explanation.-For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a licence, permit, registration, quota, concession, clearance or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, concession, clearances or a similar grant or right during the moratorium period;]" iii. It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Central Government or the....