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TMI Blog2017 (11) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... able to liquidate its dues towards the Applicant Bank. 2. As per the averments, the Corporate Debtor, which is stated to be a SPV (Special Purpose Vehicle) of a conglomeration of companies, approached the Bank for financial assistance in the form of Term loan and other financial assistance for setting up a Major Power generating Project in the North East. Given the size of the project, the Corporate Debtor had sought funding from several banks which approved and sanctioned various limits. The disbursement by banks, other than the Financial Creditor and another, was however to be made upon implementation of the project and subject to other terms and conditions. The project has yet to be set up as it is awaiting several clearances from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank has instituted the present petition seeking resolution of the Corporate Debtor. This is notwithstanding the fact that they have also initiated the recoveries under Section 19 of Recovery of Debt before the Debt Recovery Tribunal-1. 4. The Financial Creditor has placed on record the audited reports of the Corporate Debtor. 5. The Respondent on being served, has not disputed their outstanding liability towards the Applicant Bank, it has only submitted that for reasons beyond its control, on account of various requirements by the different departments of the Government, the project has stagnated for such a long period and has failed to take off. Despite the constant efforts made by all stakeholders to implement the project which is of na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r has argued that various steps have been taken by the Reserve Bank of India from time to time to revitalise suchlike distressed assets in the economy, one of these being a unanimous decision taken by the Joint Lenders Forum of Banks who have sanctioned their loans and have a corrective action plan in place. It is submitted that in view of the discussions and deliberations made amongst the lenders of the project in the meetings held in October, 2015 and June 2016, the project was supposed to achieve a timely financial closure and repayment of the short-term loan to the financial creditor was to be made from the first disbursement of the long term loan. The long-term loans, though sanctioned, were to be disbursed only upon the project being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Corporate Debtor, Ld. Counsel further submits that the last major hurdle in causing delay for implementation of the project is a stay order on the cutting of trees by the Hon'ble National Green Tribunal, all other regulatory and statutory approvals having been received. They are optimistic in obtaining the same shortly as the judgment/order is reserved. It is pointed out that an investment of over several hundred crores has already been made by them in the project and land has been acquired for setting up the power generating system which is of national importance and any resolution plan intended at this stage would be to the detriment of the nation and the various stakeholders. It is also asserted that the decision of the applicant Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther for a turn around and proper implementation or to face liquidation. 10. Given the situation, we are of the opinion that any decision made by the Joint Lenders Forum is not binding on the Financial Creditor, as the members have not disbursed any financial assistance. The Corporate Debtor therefore cannot seek to take refuge under their resolutions in order to avoid an Insolvency Resolution process, nor can they resist the Financial Creditor's entitlement for recovery under the Code on the basis of some underlying motive, supposedly resulting in some economic detriment or prejudice to national interests, as perceived by them. The correct recognition of National Interest is adherence to the rule of law impartially applicable without exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. (4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process: Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be." 12. The Financial Creditor has named Mr. Mukesh Mohan as the IRP (Mr. Mukesh Mohan, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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