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TMI Blog2022 (6) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... ptcy (Application to Adjudicating Authority) Rules, 2016, has been filed by UCO Bank through its Flagship Corporate Branch, Kolkata (hereinafter referred to as the Financial Creditor), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Limtex (India) Limited (hereinafter referred to as the Corporate Debtor). Submissions on behalf of the Financial Creditor: 3. The corporate Debtor was a constituent of the Financial Creditor and was enjoying credit facilities with the Financial Creditor with an aggregate limit Rs. 15,00,00,000/- (Rupees Fifteen Crore Only) under a consortium arrangement with State Bank of India, inter alia, in the following Accounts:- i) Cash Credit (Hypothecation A/c)- Rs. 4,00,00,000/- (Rupees Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated requests and reminders, the Financial Creditor was compelled to call up the said credit facilities and issued Notice of Demand dated 6 March, 2017 demanding payment of the entire outstanding from the Corporate Debtor. 7. In spite of such demand made as aforesaid, the Corporate Debtor has failed to liquidate the outstanding in the said accounts. The Corporate Debtor availed of the aforesaid credit facilities but failed to operate the said accounts in conformity with the terms and conditions on the basis or which it was granted and started defaulting in liquidating the outstanding dues and/or to regularize the accounts there became due from and owing by the Financial Creditor to the Corporate Debtor an aggregate sum of Rs. 25,58,52,513 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant petition. 10. The Corporate debtor denies that as on 30 September 2019, the outstanding principal payable by the Corporate Debtor is Rs. 25,58,52,513/-. Further, it is stated that Sri Prasanjit Roy, who has verified and affirmed the affidavit in support of the application under section 7 of the Code, is not legally authorized by the Financial Creditor to do so and on this ground too, the instant petition is liable to be dismissed Rejoinder on behalf of the Financial Creditor: 11. It is submitted on behalf of the Financial Creditor that the instant petition under section 7 of the Code is maintainable and not barred by the laws of limitation at all. It is stated that the account of the Corporate Debtor was declared NPA on 30 September ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dency of SARFAESI application the financial creditor is not entitled to file a petition under Section 7 of the Code as alleged or at all. 14. It is denied that Prasenjit Roy is not properly, legally or validly authorized by UCO Bank to sign or affirm the instant section 7 petition or that the instant application is liable to be dismissed with costs as alleged or at all. Analysis and Findings 15. Heard the Ld. Counsel for the Financial Creditor and the Ld. Counsel for the Corporate Debtor and perused the records. 16. The date of default in the instant petition is 30 June 2016 i.e. the date on which the accounts of the Corporate Debtor were declared NPA. The date of filing of this petition is 24 October, 2019, which would ordinarily mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red as follows:- a) The application bearing CP(IB) No. 1837/KB/2019 filed by UCO Bank (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 Limtex (India) Limited, CIN: U01132WB1992PLC054383, 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 annou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orate Debtor. h) The Financial Creditor shall deposit a sum of Rs. 3,00,000/- (Rupees three lakh only) with the IRP to meet the expenses arising out of issuing public notice and inviting claims. These expenses are subject to approval by the Committee of Creditors (CoC). i) In terms of section 7(5)(a) of the Code, Court Officer of this Court is hereby directed to communicate this Order to the Financial Creditor, the Corporate Debtor and the IRP by Speed Post, email and WhatsApp immediately, and in any case, not later than two days from the date of this Order. j) Additionally, the Financial Creditor shall serve a copy of this Order on the IRP and on the Registrar of Companies, West Bengal, Kolkata by all available means for updating the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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