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TMI Blog2020 (7) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... N : U36990GJ2009PLC056869, having its registered office at Setu, Suite 303-4-5, Ship Cross Road, Off C. G. Road, Navrangpura, Ahmedabad-380 009, Gujarat. 3. The authorised share capital of the corporate debtor company is Rs. 5,00,00,000 (rupees five crores only) divided into 50 lakhs equity shares of Rs. 10 each and paid-up share capital is Rs. 5,00,00,000 (rupees five crores only) divided into 50 lakhs equity shares of Rs. 10 each. 4. The petitioner states that various loan/credit facilities have been granted to the corporate debtor. The details/particulars thereof and the total outstanding debts are described well in the prescribed format of the present application, which are stated as under : Part IV Particulars of financial debt 1. Total amount of debt granted Date of last sanction/renewal : 28-03-2013 vide Sanction letter No.VAD/ADV/549/13 Date(s) of disbursement CC Hyp. Date of disbursement Amount (Rs.) 30-12-2009 28,50,00,000 LC/LG Date of disbursement Amount (Rs.) 17-12-2013 4,45,00,000 Term loan I Date of disb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (i) Hypothecation agreement of goods and debts (SD-06) was executed on March 29, 2013 to the extent of Rs. 48,46,00,000. Total value of plant and machinery assessed at about Rs. 6,05,90,000 as per valuation report dated December 30, 2017, annexure A/24. (ii) Equitable mortgage registered with the Sub-Registrar, Ahmedabad-3 (Memnagar) bearing No. 9260 dated September 30, 2009 for Rs. 31,10,00,000 created on the immovable properties jointly belonging to (i) Mr. Champatbhai Rikhabhai Sanghvi, and (ii) Mr. Deepak Champatbhai Sanghvias described in Schedule A of this application, annexure A/18. (iii) Equitable mortgage registered with Sub-Registrar, Ahmedabad-3 (Memnagar) bearing No. 8255 dated June 14, 2010 for Rs. 31,10,00,000 created on the immovable properties jointly belonging to the corporate debtor as described in Schedules B and C of this application, annexure A/19. (iv) Supplemental equitable mortgage registered with the Sub-Registrar, Ahmedabad-3 (Memnagar) bearing No. 13210 dated December 20, 2011 for Rs. 48,49,00,000 (enhanced from Rs. 31,10,00,000) created on the immovable properties as described in Schedules A, B and C of this application, annexure A/20. Estima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013, Rs. 1,11,00,000. (7) Demand promissory note dated March 29, 2013, Rs. 6,40,00,000. (8) Demand promissory note dated March 29, 2013, for Rs. 14,45,00,000. (9) Composite deed of hypothecation (SD-20) dated March 29, 2013, for Rs. 48,46,00,000 executed by the corporate debtor. (10) Hypothecation agreement of goods and debts (SD-06) dated March 29, 2013, for Rs. 48,46,00,000 executed by the corporate debtor. (11) Letter of undertaking not to alienate hypothecated goods (AD-12) dated March 29, 2013, for Rs. 48,46,00,000. (12) Letter of continuity (AD-09) dated March 29, 2013 for Rs. 28,50,00,000. (13) Text of the consent clause executed by corporate debtor. (14) Agreement on rate of interest (for base rate) dated March 29, 2013. (15) Memorandum of entry for deposit of title deeds for Rs. 31.10 crores registered with the Sub-Registrar, Ahmedabad-3 (Memnagar) at serial No. 9260, dated September 30, 2009. (16) Supplemental memorandum of deposit of title deeds for Rs. 31.10 crores registered with the Sub-Registrar, Ahmedabad-3 (Memnagar) at serial No. 8255, dated June 14, 2010. (17) Supplemental equitable mortgage to secure the credit facility aggregating to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust 5, 2015, requested the applicant for allowing operations on cutback basis. The applicant has approved provision of cutback facility of 20 per cent. on credit turnover in the month of September, 2015 subject to the terms and conditions conveyed vide letter dated August, 12, 2015 (acknowledged by the corporate debtor on August 13, 2015). As per the said terms accepted by the corporate debtor, corporate debtor has opened a new CD account in Vadaj Branch of the applicant and started the operations and agreed by the corporate debtor, 20 per cent. of the credits received in the CD account was to be appropriated as cutback towards the recovery in the NPA accounts of the corporate debtor. The applicant opened the said current account on September 24, 2015 in the name of corporate debtor and regular credits payments were arranged by the corporate debtor through their current account towards repayment of dues in their loan account. The corporate debtor has arranged the repayment of dues in its loan account on various dates starting from February 11, 2016 and the last such payment received from the corporate debtor is on May 31, 2017. Thereafter, the corporate debtor vide their letter dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, the credit facilities of the corporate debtor were restructured by sanctioning WCTL of Rs. 640 lakhs comprising of irregular portion of Rs. 205 lakhs from CC account, overdue (instalment + interest) of Rs. 180 lakhs of term loans-I and II and LC devolved of Rs. 240 lakhs. 12. I say that despite restructuring of limits, the corporate debtor failed to serve the interest to the desired extent and overdue instalments of term loans and hence, the account of the corporate debtor was classified as non-performing asset (NPA) on December 31, 2013." 11. On being notice issued to the corporate debtor, in respect of the present IB petition, the corporate debtor-company caused appearance, through its counsel, and filed its reply wherein it did not categorically deny its debts liability towards the petitioner-financial creditor bank, but only sought some time for making acceptable one-time settlement proposal to the petitioner. The relevant paragraphs of the reply are stated as under : "29. That the corporate debtor is trying everything in its power to settle the liability of the petitioner-bank before the admission of this insolvency petition in this hon'ble Tribunal." In paragrap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs pending against the proposed resolution professional, it may, by order, admit such application ; or (b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application : Provided that the Adjudicating Authority shall, before rejecting the application under clause (b) of sub-section (5), give a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice from the Adjudicating Authority. (6) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (5). (7) The Adjudicating Authority shall communicate- (a) the order under clause (a) of sub-section (5) to the financial creditor and the corporate debtor ; (b) the order under clause (b) of sub-section (5) to the financial creditor, within seven days of admission or rejection of such application, as the case may be." 14. In support of the present IB petition, the petitioner-bank has further proposed name of the IRP, Mr. Chandra Prakash Jain (Registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst consideration for the time value of money. As opposed to this, an operational creditor means a person to whom an operational debt is owed and an operational debt under section 5(21) means a claim in respect of provision of goods or services. When it comes to a financial creditor triggering the process, section 7 becomes relevant under the Explanation to section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor-it need not be a debt owed to the applicant-financial creditor. Under section 7(2), an application is to be made under sub-section (1) in such form and manner as is prescribed, which takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed Form in 5 Parts, which requires particulars of the applicant in Part I, particulars of the corporate debtor in Part II, particulars of the proposed interim resolution professional in Part III, particulars of the financial debt in Part IV and documents, records and evidence of default in Part V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudicating Authority hereby admits the IB petition filed under section 7 of the Insolvency and Bankruptcy Code, 2016, for initiation of the corporate insolvency resolution process, in respect of the corporate debtor. Further this the Adjudicating Authority declares moratorium under section 14 of the Code, with following orders and directions : (i) This Adjudicating Authority hereby appoints proposed IRP, by the petitioner, Mr. Chandra Prakash Jain (Registration No. IBBI/IPA-001/IP-P00147/2017-18/1031, having address at C. P. Jain and Co., Chartered Accountants, D-501, Ganesh Meridian, Opp. High Court, S. G. Road, Ahmedabad-380 060, e-mail : [email protected] ; [email protected], Mobile : 98240 36127) under section 13(1)(c) of the Code. (ii) That the order of moratorium under section 14 of the Code shall come to effect from May 27, 2020 till the completion of corporate insolvency resolution process or until this Bench approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33 as, the case may be. (iii) That the Bench hereby prohibits the institution of suits or continuation of pending suit or proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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