9911796707
TMI Blog2022 (4) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. It is found that the Petitioner has not received the outstanding amount from the Respondent and that the formalities as prescribed under the Code have been completed by the Petitioner, we are of the conscientious view that this Petition deserves 'Admission' - Petition admitted - moratorium declared. - CP (IB) 2067/MB/2019 - - - Dated:- 11-4-2022 - P.N. Deshmukh, J. (Member (J)) And Kapal Kumar Vohra, Member (T) For the Appellant : Ravi Kadam, Sr. Adv., Rohit Gupta and Prakhar Tandon i/b Agam H. Maloo, Advs. For the Respondents : Devesh Juvekar and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 1431,05,00,000 to the CD in which the Original Lender sanctioned ₹ 125,00,00,000. 4. The amount claimed to be in default as on the date of classifying the Debt as Non-Performing Asset (NPA) is ₹ 116.91 crores as principal amount (Part IV, Pg 5 of CP). The Account was classified as NPA on 30.09.2018. CD admitted that an amount of ₹ 114.34 crores as principal amount was in default as on 02.07.2018 in its Balance Sheet as on 31.03.2020 (pg 323 of Compilation of Documents). 5. Working Capital Consortium Agreement dated 26.05.2014 was executed between IDBI Bank Ltd. Consortium including Bank of India (original lender) and the CD for extending credit facilities by Original lender to CD (pg 201 of Petition). The credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Evidence Act, 1891. 10. CD stated that it had submitted OTS proposal to the IDBI Bank Ltd. Consortium and was in constant negotiation for settlement. CD stated that if the present petition is admitted, the business of CD will have a negative impact and also the vendors/customers will stop dealing with the Company and the activities of the CD will come to a standstill. 11. CD vide Affidavit dated 26.11.2019 stated that CD had initially submitted a Onetime Proposal (OTS) to the IDBI Bank Limited Consortium for an amount of ₹ 375,00,00,000. Later, the said proposal was revised to ₹ 430,00,00,000. The CD further submitted that the OTS proposal was to be placed before the competent authority. 12. Further, the CD through its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the FC. 17. Ongoing through the facts and submissions of FC and upon considering the same, it is concluded that the FC has established that the Credit facilities were sanctioned and duly disbursed to the CD and there has been default in payment of Debt on the part of the CD. 18. Considering the above facts, we come to the 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. 19. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the CD. e. The supply of essential goods or services to the CD, shall not be terminated or suspended or interrupted during moratorium period. f. The provisions of sub-section (1) of Section 14 shall not apply to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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