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TMI Blog2022 (6) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... he Corporate Debtor. Part - II of this application contains particulars of the Corporate Debtor. Part- III contains particulars of the proposed Interim Resolution Professional. Part - V of the application contains the details of the Financial Debt and the documents relied upon by the applicant in support of its debt due and payable by the Corporate Debtor to the Financial Creditor. 4. The amount claimed as on 10th of February, 2020 is Rs. 690,665,379.47/-. It is claimed by the applicant, it was in March, 2003 the applicant had sanctioned an EOU term loan of USD 3.12 million to Corporate Debtor for a period of 5 years. Initially the Corporate Debtor was repaying such loan. The Financial Creditor sanctioned another term loan of 30 crores on 2nd of March, 2009 for financing the cost of expansion-cum-modernisation project at Bangalore. Copy of this sanction letter is marked as Annexure- F. 5. Thereafter the Financial Creditor entered into a Facilities Agreement with the Corporate Debtor on 6th April, 2009 for providing the aforesaid financial assistance to the Corporate Debtor. A copy of which has been marked as Annexure- G. 6. The Corporate Debtor further executed a Deed of Hypothe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ackage in respect of the Corporate Debtor was approved by the Empowered Group of CDR at its meeting dated 20th December, 2011. A copy of which has been annexed as Annexure L. 11. The Financial Creditor also agreed to the restructuring package approved by the Empowered Group of CDR and had communicated such decision to the Corporate Debtor by its sanction letter no. CBG:EOU-724 dated 16th March, 2012. A copy of which is annexed as Annexure M. 12. In this regard, the Financial Creditor also entered into a Rupee Loan Agreement with the Corporate Debtor on 30th March, 2012 is annexed hereto and marked as Annexure N. 13. The Corporate Debtor executed a Deed of Hypothecation of movable assets on 30th of March, 2012 in favour of Financial Creditor whereby the Corporate Debtor hypothecated and created a charge in favour of the Financial Creditor on all its movable assets (both present and future) as mentioned in schedule III therein as security for the due observance, performance and discharge of its obligations and liabilities under the Loan Agreement. A copy of the Deed of Hypothecation is annexed hereto and marked as Annexure O. 14. The Corporate Debtor created mortgages by executin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Financial Creditor along with the other lenders entered into an Inter Se Agreement dated 15th January, 2013 whereby the rights of each of the lenders were set out. A copy of this Inter Se Agreement is marked as Annexure- S. 18. The Corporate Debtor upon availing the facilities extended by various lenders amounting to Rs. 466,86,00,000/- executed a Joint Deed of Hypothecation of movable assets on 15th January, 2013 in favour of all the lenders including the Financial Creditor as required under the Working Capital Consortium Agreement dated 15th January, 2013. Copy of Joint Deed of Hypothecation is marked as Annexure- T. 19. Pursuant to the execution of the Working Capital Consortium Agreement, Mr Shyam Sunder Shah (deceased now) and Mr. Sundeep Shah executed a Joint Deed of Guarantee dated 15th January, 2013 for a principal sum not exceeding Rs. 466,86,00,000/- in favour of the lenders including the Financial Creditor. In terms of the Joint Deed of Guarantee Mr Shyam Sunder Shah(deceased now) and Mr. Sundeep Shah Jointly and severally undertook to be liable for repayment of all amount due and payable by the Corporate Debtor. A copy of which is annexed as Annexure- U. 20. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... num till the payment is made. The said demand notice dated 28 November, 2014 along with a copy of the postal receipts and A/D cards are annexed hereto and marked as Annexure BB. 26. The Corporate Debtor respondent to such letter after the completion of the statutory period of 60 days on 3 February, 2015 stating that no action should be taken against the Corporate Debtor at this stage as it would adversely affect the restructuring of the company. It was further stated that the Corporate Debtor had applied for reference under Sick Industrial Companies Act, 1985 with the Board of Industrial and Financial Reconstruction. Subsequently, the Financial Creditor had issued a reply by its letter dated 17 February, 2015 to the Corporate Debtor, Mr Shyam Sunder Shah and Mr Sundeep Shah stating, inter alia, that the Corporate Debtor is using the BIFR as a mode of evading the recovery action initiated by the consortium. A copy of letters dated 3 February, 2015 is marked as Annexure CC. 27. Thereafter, the Financial Creditor had issued various letters including letters dated 9 April 2015 which were duly acknowledged by the Corporate Debtor without demur and protest. The Corporate Debtor further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 4 March, 2019. The Copies of which are marked as Annexure- EE. The part payments received by the Financial Creditor from the Corporate Debtor till date is approximately Rs. 2,65,00,000/- 31. In the facts and circumstances, it is clear that the Corporate Debtor after duly availing the credit facilities granted to it had committed defaults from time to time and have completely failed in repaying the loan amount. The certified copies of Statement of Accounts in respect of the aforesaid Loan Account, maintained by the Financial Creditor in regular course of business duly certified under the Bankers' Books Evidence Act are annexed as Annexure- FF. It would be evident from the statement of accounts that the total outstanding amount to be paid by the Corporate Debtor as on 10th February, 2020 is Rs. 69,06,65,379/- 32. The total amount outstanding as of 10 February 2020 is Rs. 69,06,65,379. The loan was recalled by the Financial Creditor on 11 September 2014. Thereafter, the Corporate Debtor by its various letters including the letter dated 2nd March, 2019 had acknowledged the debt and proposed onetime settlement which was not acceptable to the Financial Creditor. 33. Part 5 contains t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04.2015 ii. State Bank of Hyderabad, settled bilaterally on 24.04.2015 iii. Canara Bank & UCO Bank, Assigned their debts to the Edelwise Asset Reconstruction Company Limited and the Edelwise Asset Reconstruction Company Limited entered into settlement arrangement with the Corporate Debtor vide letter dated 28.10.2015 for a total sum of Rs. 45.80 Crore. iv. State Bank of Mysore, settled bilaterally on 15.03.2016. v. Federal Bank assigned its debt to the Edelwise Asset Reconstruction Company Limited and the Edelwise Asset Reconstruction Company Limited entered into settlement arrangement with the Corporate Debtor vide letter dated 01.06.2016 for a total sum of Rs. 9.00 Crore. vi. Small Industries Development Bank of India, settled bilaterally on 11.08.2016. vii. State Bank of India, Assigned their debts to ASREC (India) Limited (ASREC) and the Corporate Debtor entered into settlement arrangement with ASREC vide letter dated 08.08.2017. viii. State Bank of India, Assigned their debts to ASERC(India) Limited (ASREC) and the Corporate Debtor entered into settlement arrangement with ASREC vide letter dated 08.08.2017. ix. Allahabad Bank, Assigned their debts to Om ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uses the expression "default" not the date of notifying the loan account of the corporate person as NPA. Further, the expression "default" has been defined in Section 3(12) to mean non-payment of "debt" when whole or any part or instalment of the amount of debt has become due and payable and is not paid by the debtor or the corporate debtor, as the case may be. In cases where the corporate person had offered guarantee in respect of loan transaction, the right of the financial creditor to initiate action against such entity being a corporate debtor (corporate guarantor would get triggered the moment the principal borrower commits default due to non-payment of debt. Thus, when the principal borrower and/or the (corporate) guarantor admit and acknowledge their liability after declaration of PA but before the expiration of three years there from including the fresh period of limitation due to (successive) acknowledgments, it is not possible to extricate them from the renewed limitation accruing due to the effect of Section 18 of the Limitation Act. Section 18 of the Limitation Act gets attracted the moment acknowledgment in writing signed by the party against whom such right to initiat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws:- (a) The application bearing C.P (IB) No. 588/KB/2020 filed by Export- Import Bank of India, the Financial Creditor, under section 7 of the Code read with rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP against Eastern Silk Industries Limited, the Corporate Debtor, is admitted. (b) There shall be a moratorium under section 14 of the IBC. (c) The moratorium shall have effect from the date of this order till the completion of the CIRP or until this Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 of the IBC or passes an order for liquidation of Corporate Debtor under section 33 of the IBC, as the case may be. (d) Public announcement of the CIRP shall be made immediately as specified under section 13 of the Code read with regulation 6 of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. (e) Mr. Anil Agarwal, registration number IBBI/IPA-001/IPP00270/ 2017-2018/10514, email: [email protected], is hereby appointed as Interim Resolution Professional (IRP) of the Corporate Debtor to carry out the functions a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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