9911796707
TMI Blog2021 (9) TMI 1395X X X X Extracts X X X X X X X X Extracts X X X X ..... t has duly been established by the above documents albeit the Corporate Debtor has opposed the same without substantial evidence - the Corporate Debtor tried to raise contentions like lack of cooperation from the Financial Creditor in assignment of debt and that the Financial Creditor has filed proceeding before the Debt Recovery Tribunal, Hyderabad, the amounts claimed before the Debt Recovery Tribunal and the amounts claimed before this Adjudicating Authority do not match. Such contentions have no bearing before this Adjudicating Authority in the matter of considering this application under section 7 of the I B Code, 2016. At the time of admission of the petition filed under section 7 of the I B Code, the Tribunal has to consider whether there is debt and default. Petition admitted - moratorium declared. - CP (IB) No. 1/7/HDB/2020 - - - Dated:- 23-9-2021 - M.B. Gosavi, Member (J) And Veera Brahma Rao Arekapudi, Member (T) For the Appellant : V.V.S.N. Raju, Advocate. For the Respondents : G. Giridhar, Advocate. ORDER 1. The petitioner was incorporated as State Bank of India on 01.07.1955 vide State Bank of India Act, 1955 and its PAN is AAACS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000/-. Irregular portions in cash credit account was converted to WCTL-1 and WCTL-2. Interest payable but remained unpaid was converted to FITL-1 and FITL-2. Irregularity-second instance: 7. The Corporate Debtor failed to adhere to the terms and conditions of sanction. As a result the loan accounts of the Corporate Debtor became irregular. 8. The Financial Creditor issued Demand Notice dated 26.09.2017 under section 13(2) of SARFAESI Act, 2002 calling upon the Corporate Debtor to pay the amounts due in the loan accounts of the Corporate Debtor as on 31.08.2017 along with interest, incidental expenses and costs. The Corporate Debtor failed to pay the same. 9. The Corporate Debtor submitted proposal of One Time Settlement (OTS) to the Financial Creditor and the same was rejected by the Financial Creditor. 10. The present application is filed by the financial creditor/State Bank of India against Corporate Debtor for default of financial debt of Rs. 216,95,55,314.55 (Rupees two hundred sixteen crores ninety five lakhs fifty five thousand three hundred fourteen and paise fifty five only) as on 31.10.2019. Hence, this Petition is filed under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Act, 1963 to maters filed under section 7 of the I B Code, 2016. (iv) Laxmi Pat Surana Vs. Union Bank of India, Civil Appeal No. 2734 of 2020, by the Hon'ble Supreme Court. Para 35. Held. There is no reason to exclude the effect of section 18 of the Limitation Act to the proceedings initiated under the Code. (v) Asset Reconstruction Company (India) Limited Vs. Bishal Jaiswal another, in Civil Appeal No. 323 of 2021 with Civil Appeal No. 3765 of 2020 by the Hon'ble Supreme Court. Paras 33-34. Held. Section 18 of the Limitation Act extends the period of limitation depending upon an acknowledgment of debt made in writing and signed by the Corporate Debtor, applies to proceedings under the I B Code. (vi) Rakesh Kumar Gupta Vs. Mahesh Bansal and another, in Company Appeal (AT) (Insolvency) No. 1408 of 2019, by the Hon'ble Supreme Court. (vii) Punjab National Bank Vs. M/s. Vindhya Cereals Pvt. Ltd., in Company Appeal (AT) (Insolvency) No. 854 of 2019, by the Hon'ble NCLAT, wherein maintenance of parallel proceedings before Debt Recovery Tribunal and NCLT, was discussed. Paras 9-10. (viii) A. Navinchandra Steels Private Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered favourably and sanctioned cash credit limits and enhanced credit limits from time to time as discussed in the preceding paras. 18. We have perused relevant letters from the Corporate Debtor for grant credit facilities, Sanction Letters issued in favour of the Corporate Debtor, which were acknowledged by the Corporate Debtor, pledge agreements, supplemental agreements of loan, Board Resolution of the Corporate Debtor. 19. As regards the contention of the Corporate Debtor that the present application is barred by limitation we are of the view that Corporate Debtor having submitted OTS proposals on 19.09.2018, 09.11.2018 and 15.07.2019, cannot afford to make such submission. Besides, the Corporate Debtor had entered into Restructuring Package Agreement dated 19.12.2015. 20. As regards the unpaid interest converted into loan, we are of the opinion that since the Corporate Debtor could not pay the interest and it was at the request of the Corporate Debtor enhanced credit facilities were granted while continuing restructuring scheme, the Corporate Debtor cannot raise such contention. 21. Existence of debt and default has duly been established by the above docume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod, (D) Notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, concessions, clearances or a similar grant or right during the moratorium period. (E) That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. (F) That the order of moratorium shall have effect from the date of this order till the completion of the 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, whichever is earlier. (G) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
