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TMI Blog2019 (12) TMI 1415X X X X Extracts X X X X X X X X Extracts X X X X ..... rporate Insolvency Resolution Process (in short "CIRP") against M/s. Shree Ambika Sugars Limited (hereinafter referred as "Corporate Debtor'') on the ground that the Corporate Debtor has defaulted repaying an amount of ' 2,83,10,52,539.32 as on 14.01.2019 as against the loans availed by the Corporate Debtor. 2. The Financial Creditor counsel states that Corporate Debtor availed the working capital credit facilities for its Sugarcane Division from the Financial Creditor (Punjab National Bank) consortium comprising of Canara Bank (CB), Union Bank of India (UBI), State Bank of India (SBI), Andhra Bank (AB), Indian Bank (IB) and Lakshmi Vilas Bank (LVB) based on the respective sanction letters given by the Financial Creditor as giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vilas Bank. Further, the Corporate Debtor had executed revival letter on 26.12.2014 to cover the total fund-based exposure of ' 200 crores and non-fund based exposure of ' 28.35 crores in favour of Creditor Bank. 2.2 The Financial Creditor counsel submits that since the Corporate Debtor was not in a position to service the liability, the Industrial Finance Corporation of India Ltd (IFCI Ltd) had formed a Joint Lenders Forum in order to identify incipient stress in the account of the Corporate Debtor and classified the account as 'Special Mention Account (SMA)' in terms of guidelines issued by Reserve Bank of India. In a bid to tide over the business operation, the Corporate Debtor sought for sanction of Export Performance B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es 8. 21.09.2017 Supplementary and mandatory agreement executed by the Corporate Debtor wherein SBI and L&T Infrastructure Finance Company had become members of PNB Consortium 9. 24.11.2017 Balance and security confirmation executed by the Corporate Debtor 10. 05.11.2018 Demand Notice issued by PNB Consortium through its security trustee, IDBI Trusteeship company u/s. 13(2) of the SARFAESI Act 11. 21.01.2019 Certificate of Charge for the total limit of ' 608.80 crores issued by RoC in favour of PNB consortium 12. 11.02.2019 Legal Notice issued to the Corporate Debtor 13. 19.02.2019 Certificate issued under Banker's Book Evidence Act 2.4. Looking at the dates and events as well as the annexures to the Application, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prolonged drought and shortage of cane took a heavy toll on the availability of molasses and bagasse for viable operation of the distillery and co-generation plants and that these factors had already been brought to the attention of Bankers and it had proposed one Time Settlement (OTS). The Corporate Debtor made a request that the recovery proceedings initiated before NCLT/DRT may be kept in abeyance and in case of accounts already admitted by NCLT, banks may defer holding meetings of CoC till a decision is taken on request for restructuring of loans which will help the financially stressed sugar mills to start the crushing operations immediately and motivate cane farmers to do more cane planting during the current season in the backdrop of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; d) the recovery of any property by a owner or lessor where such property is occupied by or in the possession of the corporate debtor. II. The supply of essential goods or services of the Corporate Debtor shall not be terminated or suspended or interrupted during moratorium period. III. That the provisions of Sub-section (1) of Section 14 of IBC shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. IV. That the order of morator ..... X X X X Extracts X X X X X X X X Extracts X X X X
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