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TMI Blog2018 (10) TMI 1653X X X X Extracts X X X X X X X X Extracts X X X X ..... iabilities of the GECL had been transferred and vested in GGL. 3. That GGL is a public Limited Company engaged in the business of manufacturing importing and exporting gold jewellery. One Mr.Mehul C Choksi is the Promoter and the Managing Director of the Corporate Debtor. ICICI Bank is the lead bank in consortium agreement dated 23rdMarch 2007 meant for Working Capital. Acting through its branch located in Dubai the applicant had advance a loan to GGL through its Singapore Branch to GGL by way of ECB agreement dated 10th September 2006. Pursuant thereto vide working capital consortium agreement dated 23rdMarch 2007 a consortium of 21 lenders led by Allahabad Bank sanctioned a working capital loan aggregating up to 791.82 crores. The said facility was secured by a joint deed of hypothecation dated 23rd March 2007. Subsequently, various other banks joined the consortium and by Joint Supplemental Working Capital Consortium Agreements dated 4 July 2008, 30 November 2010 and 30 August 2011 to GGL Facility Agreement, the overall sanction limit extended to the Corporate Debtor was enhanced to INR 2477 Crores (INR Two Thousand Four Hundred and Seventy- Seven crores only). Thereafter by on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 016. According to which there was a change on the "Charge" and thereafter certain foreign brands held by the subsidiaries or step-down subsidiaries were included, namely „Canadia‟ and „Revv‟ owned by Jewellery Marketing Company, and „Passion Stone‟ owned by Gitanjali USA Inc., a substituted charge was created. 11. It is also pertinent to place on record that the Loan facility granted was secured by securities, hypothecation and by pledging of the assets. Records of the case contains a long list of such securities or execution of deeds, in short listed below ;- "a. Supplemental Deed of Hypothecation dated 19th August 2016 executed by GGL, hypothecation current assets and movable properties of GGL as more particularly detailed therein a copy of the Supplemental Deed of Hypothecation is annexed with the Petition. b. Deed of Hypothecation dated 24 October 2016 executed by Gili India Limited (Gili) under which the intellectual property in relation to its trademarks were hypothecated. A copy of the Deed of Hypothecation is annexed with the Petition. c. Power of Attorney executed by Gili whereby the Applicant, in terms of the Bilateral Agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is annexed with the petition. j. Power of Attorney for creation of Mortgage Security dated 24 October 2016 executed by Decent Investment and Finance Limited in favour of the Applicant on first pari-passu charge in respect of property situated in Laxmi Towers, BKC, Mumbai. A copy of the Power of Attorney for creation of Mortgage Security is annexed with the petition. k. Power of Attorney for creation of Mortgage Security dated 24 October 2016 executed by Decent Securities and Finance Limited in favour of the Applicant on first pari-passu charge in respect of property situated in Laxmi Towers, BKC, Mumbai. A copy of the Power of Attorney for creation of Mortgage Security is annexed with the petition. l. Power of Attorney for creation of Mortgage Security dated 24 October 2016 executed by Eureka Finstock Private Limited in favour of the Applicant on first paripasu charge in respect of property situated in Laxmi Towers, BKC, Mumbai. A copy of the Power of Attorney for creation of Mortgage Security is annexed with the petition. m. Power of Attorney for creation of Mortgage Security dated 24th October 2016 executed by Nashik Multi Services SEZ Limited in favour of the Applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Bank has registered a Criminal Complaint through FIR dated 15th February 2018 with Central Bureau of Investigation against Mehul C. Choksi, Director of Gitanjali Groups. Enforcement directorate has also been informed. Proceedings were initiated under Prevention of Money Laundering Act, 2002. Under another Act of Fugitive Economics Offenders Ordinance, 2018 came into force and under this Act compliant got registered. 15. Due to continuing defaults, a recall notice was issued on 19thFebruary 2018 and another recall notice was issued on 21st February2018.As per the said notices it was called upon the Corporate Debtor to owner the obligation to pay the outstanding debt under GGL Facility and GECL Facility aggregating to Rs. 471,62,150 as on 31stJanuary 2015 together with interest. Likewise recall notice was issued in respect of ECB facility on 21st February 2018 (ECB Recall Notice for outstanding debt or USD 116,92,665.). The Corporate Debtor failed to fulfil it‟s obligation. 16. The Petitioner has also filed an application before Debt Recovery Tribunal, Mumbai u/s 19 for a claim of a Rs.486,44,20,22.10 and USD 12,053,170.39. Simultaneously the Petitioner moved this applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofessional shall also join with them in ascertaining the exact magnitude of default committed by this Debtor Company. It is worthwhile to express that all the agencies are expected to co-operate in investigation by exchanging the information gathered respectively by them. In that process the presence of the Resolution Professional is going to be very useful. 19. One more aspect supporting the "Admission" of the Petition has been conveyed, prima-facie convincing, that the Government Agencies who have seized the assets of the Defaulters are being only protected from further damage. But ultimately those seized assets have to be distributed among the creditors, either Financial Creditor or Operational Creditor. That process of disbursement can only be possible under the newly enacted I&B Code 2016. On commencement of CIRP either a Resolution plan shall be submitted for Committee of Creditors‟ consideration or else Liquidation Process shall take place. In either case the due legal process is possible only under I&B Code. As a consequence, I am of the firm opinion that in a situation when Financial Debt has been ascertained and undisputedly the Debtor Company had defaulted in repa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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