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TMI Blog2019 (9) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) of the Code being satisfied in the present case, the application for initiation of CIRP against Priknit Retails Limited is directed to be admitted. Application admitted - moratorium declared. - CP(IB) NO. 398/CHD./PB/2018 - - - Dated:- 11-9-2019 - Ajay Kumar Vatsavayi, Judicial Member And Pradeep R. Sethi, Technical Member Gaurav Goyal, Adv. for the Petitioner. Harsh Garg, Adv. and Pulkit Jain, Adv. for the Respondent. JUDGMENT Ajay Kumar Vatsavayi, 1. The application in the prescribed Form No.1 is filed by State Bank of India (hereinafter referred to as Bank) for initiation of Corporate Insolvency Resolution Process (CIRP) in the case of Priknit Retails Limited, (hereinafter referred to as Corporate Debtor). The application is filed under section 7 of the Insolvency and Bankruptcy Code, 2016 (Code) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (Rules). The application is signed by Shri Kailash Chander, Assistant General Manager, Stress Asset Management Branch at Fountain Chownk, Civil Lines, Zonal Business office, Ludhiana. His affidavit verifying the contents of the application is at pag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor were declared NPA on 31.03.2009 due to the default in repayment of instalments. 4. In Part-V of Form No.1, the particulars of security held are given. It is stated that the credit facilities are primarily secured by way of mortgage of lands. It is further stated that the sanction letters dated 19.04.2008 and 27.08.2008 are filed at Annexure A-5 A-6 of the petition and that the terms and conditions of the sanction letters were duly acknowledged by the Corporate Debtor through its authorised Director(s)/signatories vide Board Resolutions of Corporate Debtor dated 19.04.2008 and 11.09.2008. Also, copy of a charge verification report is attached as Annexure A-20 of the petition. Annexure A-23 are the Valuation reports, Annexure A-12 is a list of various properties mortgage and Annexure A-11 is the copy of Title Deeds. The copy of the report of Credit Information Bureau India Ltd.(Cibil) dated 19.07.2018 is stated to be attached as Annexure A-22 of the petition. The statement of account pertaining to the credit facilities duly certified under the Bankers Books Evidence Act, 1891 along with the calculation sheets are stated to be attached as Annexures A-14 to A-19 of the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner-financial creditor as suggested in the latest OTS letter and proposal which is lying with the petitioner-bank for consideration. It has also been averred that the loan account of the corporate debtor was settled by the financial creditor for a sum of ₹ 30 crores and a consent decree for the same has been filed, for which the corporate debtor has already paid ₹ 15 crores as part payment of the One Time Settlement amount. The consent decree was rejected by the financial creditor unilaterally and corporate debtor was not informed about the same. It is submitted that the corporate debtor is willing to make the remaining payment as per the consent decree for One Time Settlement, which is under active consideration of the petitioner-bank. 10. The Corporate Debtor in its reply has raised the issue of limitation by stating that the debt by the financial creditor was granted in 2008 and exceeds the limitation of 3 years, making the debt hopelessly time-barred. 11. During the course of the hearing, the learned counsel for the Bank relied on the petition filed and stated that the requirements of section 7 of the Code are satisfied and the petition be admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the order dated 21.07.2016, it was held by the DRT-I, Chandigarh that since the defendants have failed to comply with the terms and conditions as per Annexure C-1 of the Consent Decree dated 22.01.2015 based on the OTS dated 09.04.2014, MA RR 5005 of 2016 in OA No.157 of 2012. Further vide MA 89 of 2016, a recovery certificate was issued, wherein the defendants were ordered to pay ₹ 1,22,66,93,975/- with interest, till the realization along with ₹ 1,50,000/- as costs. The recovery certificate is still pending adjudication before the Recovery Officer, DRT, Chandigarh. 16. Section 7(5)(a) of the Code is as follows:- (5) Where the Adjudicating Authority is satisfied that- (a) a default has occurred and the application under sub_section (2) is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application. 17. In the present case, the occurrence of default is evidenced by the details furnished by the bank including report of CIBIL, the copies of statement of accounts duly certified under the Bankers Books Evidence Act 1891, Balance Confirmation letters dated 14.02.2009 by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions as may be notified by the Central Government in consultation with any financial sector regulator and to a surety in a contract of guarantee to a corporate debtor. 24. The order of moratorium shall have effect from the date of this order till completion of the corporate insolvency resolution process or until this Bench approves the resolution plan under sub-section (1) of section 31 or pass an order for liquidation of corporate debtor under Section 33 as the case may be. 25. The following directions are also issued in respect of the appointment of the Interim Resolution Professional:- (i) Appoint Mr. Sanjay Kumar Aggarwal, resident of #14, New Punjab Mata Nagar, Main Street, Pakhowal Road, Ludhiana - 141013, having Registration No. IBBI/IPA-002/IP-N00126/2017-2018/10295 and email address [email protected], Mobile No.9876105414 as an Interim Resolution Professional; (ii) The term of appointment of Mr. Sanjay Kumar Aggarwal, shall be in accordance with the provisions of section 16(5) of the Code; (iii) In terms of section 17 of the Code, from the date of this appointment, the powers of the Board of Directors shall stand suspended and the managem ..... 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