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TMI Blog2022 (7) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 August, 2019 before this Adjudicating Authority on the ground that the Corporate Debtor has defaulted in a sum of Rs.5,95,24,264.00/- (Rupees Five Crores Ninety Five Lakh Twenty Four Thousand Two Hundred and Sixty Four only) as on 31 May, 2019 under cash credit and term loan. The account of the Corporate Debtor was declared as NPA on 29 March, 2012. 4. It is submitted in the Petition, Part - II that the authorized share capital of the Corporate Debtor is Rs.20,00,000/- (Rupees Twenty Lakh only) with paid up Capital as Rs.22,66,000/- (Rupees Twenty Two Lakh Sixty Six Thousand only). 5. Submissions by the Ld. Advocate on behalf of the Financial Creditor: a) In the year 2006, the State Bank of India ('SBI') had sanctioned term loan and cash credit facility to the Corporate Debtor. The credit facility was enhanced from time to time by the SBI. b) Thereafter, on 18 July, 2014, the SBI assigned its debt to the Financial Creditor (Assignment Agreement at page 13 - 65 of the Petition). As per the Assignment Agreement the total amount due was Rs.2,66,66,867/- (Rupees Two Crore Sixty Six Lakh Sixty Six Thousand Eight Hundred Sixty Seven only) as on 28 February, 2014 along with inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Rs.1.80 Crores along with an upfront payment of Rs.15% being a sum of Rs.27,00,000/-. SBI accepted the revised proposal and appropriated the upfront payment of Rs.27,00,000/-. Hence, the Corporate Debtor was required to pay a balance of Rs.1.53 crores. e) Thereafter, the Debt was assigned to the Financial Creditor. The Corporate Debtor was further informed the assignee i.e., the Financial Creditor will issue notice informing that the debt has been assigned to them and accordingly the Corporate Debtor would have liberty to pay the balance amount to the newly opened account by the assignee. However, no communications were received by the Corporate Debtor from the assignee. f) In the year 2017, it transpires that after three year of assignment of the debt, the Financial Creditor filed an application before the Ld. Debt Recovery Tribunal. It is also pertinent to mention that the recovery proceeding initiated by the SBI is still pending adjudication before the Ld. Debt Recovery Tribunal. 8. Reply to the Supplementary Affidavit by the Financial Creditor. a) Vide letter dated 06 June, 2017, the Corporate Debtor was informed about the assignment in question by the Financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court has held that "37. Ordinarily, upon declaration of the loan account/debt as NPA that date can be reckoned as the date of default to enable the financial creditor to initiate action under Section 7 of the Code. However, Section 7 comes into play when the corporate debtor commits "default". Section 7, consciously 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 nonpayment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. Soumitra Lahiri registration number IBBI/IPA-001/IP-P00734/2017- 2018/11232, email: [email protected], is hereby appointed as Interim Resolution Professional (IRP) of the Corporate Debtor to carry out the functions as per the Code subject to submission of a valid Authorisation of Assignment in terms of regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016. The fee payable to IRP or the RP, as the case may be, shall be compliant with such Regulations, Circulars and Directions as may be i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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