9911796707
TMI Blog2021 (3) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... ,849/- including interest. The date of default is stated to be 01.01.2020. SUBMISSIONS BY THE PETITIONER: 3. The Petitioner is the assignee of the Financial Debt. The Financial Debt of Rs. 55,00,00,000/- was originally disbursed by ECL Finance Limited ("Assignor Bank"), to the Corporate Debtor. This disbursement was made on 20.11.2016 pursuant to a Sanction Letter dated 14.10.2016. 4. The Petitioner mentions that a further sanction of Rs. 30,00,00,000/- was planned but never advanced because of noncompliance( s) on the part of the Corporate Debtor. 5. On 21.05.2019, the Assignor Bank assigned the debt payable under the Non-Convertible Debentures (NCD's) based credit facilities in favour of the Petitioner vide an Assignment Agreement and Catalyst Trusteeship Limited ("Catalyst") was appointed as the Debenture Trustee. 6. Thereafter 1100 redeemable non-convertible debentures with the face of Rs. 5,00,000/- for an aggregate amount of Rs. 55,00,00,000/- issued by the Corporate Debtor. 7. As per the terms and conditions mentioned in an agreement, the principal amount of the Debentures was to be redeemed by the Corporate Debtor in 6 quarterly instalments commencing from two and hal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r financial assistance for enabling the Corporate Debtor to undertake the construction and execution of the said project and had also agreed to sell units / apartments / premises in the project. 15. The Corporate Debtor further mentions that, despite representing that the Corporate Debtor would be granted loan of Rs. 85,00,00,000/- , the Petitioner unilaterally bifurcated the said loan into two loans of Rs. 55,00,00,000/- and Rs. 30,00,00,000/- respectively. The Petitioner issued two separate letters both dated 14.10.2016, one for providing financial assistance by way of subscription of debenture of Rs. 55,00,00,000/- and the other for grant of a loan of Rs. 30,00,00,000/- which would be disbursed on receipt of Commencement Certificate for the project. 16. The Corporate Debtor executed a Debenture Trust Deed on 29.11.2016 with one Catalyst Trusteeship Limited nominated by the Corporate Debtor as Debenture Trustees wherein the Corporate Debtor subscribed for debentures of the Company. The proceeds received on issuance of the debentures were to be utilised by the Corporate Debtor for meeting project development expenses and the project costs. The tenure of the debentures were 45 mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he remaining financial assistance of Rs. 30,00,00,000/- through emails and during personal meetings, so as to proceed further with the construction work. The Petitioner had forwarded drafts of the documents to be executed for grant of the financial assistance of Rs. 30,00,00,000/- and even jointly confirmed the execution and registration dates for same and also the date of disbursement of these funds but failed to execute them and disburse the amount of Rs. 30,00,00,000/- which was utmost critical for the Corporate Debtor to proceed with the construction. 21. Due to the delay and default in providing the financial assistance of Rs. 30,00,00,000/- despite Petitioner's assurances and representations as is evident from two separate sanction letters both dated 14.10.2016 for Rs. 55,00,00,000/- and for Rs. 30,00,00,000/-, the Corporate Debtor was forced to arrange funds from its own sources for funding the on-going construction work and was also required to pay huge amounts of rent per month to the society members who were shifted from the construction site. 22. It is further stated by the Corporate Debtor that in case the present Petition is admitted, the Corporate Debtor shall suffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay. Hence, owing to the inability of the Corporate Debtor to pay its dues, this is a fit case to be moved u/s 7 of the I&B Code. 27. Edelweiss Asset Reconstruction Company Limited as a Financial Creditor has filed this Petition u/s. 7 of the IBC against M/s. Meeti Developers Private Limited, Corporate Debtor, which as per Form 1 of the Petition and other documents produced before this Bench, as on 27.03.2020 (date of filing the Petition) was Rs. 71,32,09,849/-. 28. The Bench notes that the Petitioner is the Assignee of the financial debt which was originally disbursed on 20.11.2016 by ECL Finance Ltd. against a sanction letter dated 14.10.2016. The Bench notes that even though a further sanction of Rs. 30,00,00,000/- was proposed to the Corporate Debtor, however, because of noncompliance, this additional sanction was never disbursed and the total amount actually disbursed and in default is Rs. 55,00,00,000/-. 29. This Bench further notes that money was given on secured nonconvertible debentures of an aggregate amount of Rs. 55,00,00,000/- by the Corporate Debtor. The Debenture Trustee has been placed on record by the Petitioner. Also the list of secured documents by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... porate Insolvency Resolution Process. Further, a large number of families who were residing in the Society on the Said Property and who have been forced to shift elsewhere during the redevelopment shall be left in a lurch as the initiation and completion of the Corporate Insolvency Resolution Process shall take considerable time and their lives and livelihoods shall be severely affected. 12) Further, the Corporate Debtor is ready and willing to settle the captioned matter if the Corporate Debtor is given some time so as to arrange for funds and therefore, it is not required to admit the present Petition." 35. Considering the above facts, we come to conclusion that the nature of Debt is a "Financial Debt" as defined under section 5 (8) of the Code. It has also been established that there is a "Default" as defined under section 3 (12) of the Code on the part of the Debtor. The two essential qualifications, i.e. existence of 'debt' and 'default', for admission of a petition under section 7 of the I&B Code, have been met in this case. 36. As a consequence, keeping the afore said facts in mind, it is found that the Petitioner has not received the outstanding Debt from the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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