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TMI Blog2022 (9) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... - C. P. (IB)/739(KB)2020 - - - Dated:- 27-9-2022 - Shri Rohit Kapoor , Member ( Judicial ) And Shri Balraj Joshi , Member ( Technical ) For the Financial Creditor 1. Mr. Om Narayan Rai , Adv For the Corporate Debtor 1. Mr. Subhankar Nag , Adv. 2. Mr. Avishek Guha , Adv. 3. Mr. Chitresh Saraogi, Adv ORDER Per Balraj Joshi , Member ( Technical ) : 1. The Court convened via hybrid mode. 2. This is a Company Petition filed under section 7 of the Insolvency and Bankruptcy Code, 2016 ( the Code ) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Mr. Abhijeet Singh, Chief Manager, Indian Bank( Financial Creditor ), duly authorized vide resolution passed by the Board of Directors dated 12 December, 2017 Annexure - A of the Petition for initiation of Corporate Insolvency Resolution Process ( CIRP ) against Machine Works (International) Limited ( Corporate Debtor ). 3. The present Petition was filed on 17 March, 2020 before this Adjudicating Authority on the ground that the Corporate Debtor has defaulted in the payment of sum of Rs.7,56,86,986.33 (Rupees Seven Crore Fifty Six Lakh Eighty Six Thousand Ni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh letter of guarantee. 5.5 On 31 March, 2016, the Corporate Debtor issued letter to the Financial Creditor, wherein they acknowledged the total debt of Rs.7,11,18,426.66/- (Rupees Seven Crore Eleven lakh Eighteen Thousand Four Hundred Twenty Six and Sixty Six Paisa only) as due and payable. 5.6 The Corporate Debtor failed to maintain the loan account. The Financial Creditor through written notices dated 18 April, 2017 and 01 July, 2017 reminded the Corporate Debtor to regularize the cash credit account immediately to ensure routing of business transactions. However, the Corporate Debtor and the its guarantor failed to do so, because of which the account of the Corporate Debtor was classified as NPA on 19 February, 2018. 5.7 In view of such facts, a demand notice under section 13(2) of the SARFAESI Act, 2002 dated 30 March, 2018 was issued to the Corporate Debtor as well as to its guarantors. However, the said notice was withdrawn and a fresh demand notice dated 05 November, 2019 under section 13(2) of the SARFAESI Act, 2002 was issued upon the Corporate Debtor. Thereafter, proceeding was initiated against the Corporate Debtor before the Hon ble Debt Recovery Tribunal and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e credit facilities were renewed on 23May, 2013. Upon such renewal the Cash Credit Limit remained at Rs.80,00,000/- (Rupees Eighty Lakh only) and Bank Guarantee Limit remained at Rs.10,00,000/- (Rupees Ten Lakh only). The credit facilities upon renewal were secured by the same Primary Securities and Collateral Securities as was there prior to the renewal along with other ancillary documents. 6.5 The Corporate Debtor all along duly complied with the terms and conditions and has always acted bona fide in respect of the aforesaid credit facilities. Subsequently, with passage of time, there were defaults in repayment although not attributable to the Corporate Debtor. 6.6 The Corporate Debtor received a notice dated 30 March, 2018, under Section 13(2) of the SARFAESI Act, 2002, through which it was informed that the account of the Corporate Debtor had been classified as NPA on 28 February, 2018 and called upon it to repay the outstanding amount with interest 6.7 The notice was subsequently withdrawn and fresh notice of demand dated 05 November, 2019 was served upon the Corporate Debtor, again under Section 13(2) of the SARFAESI Act, 2002, stating that the account had turned NPA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the orders passed by the Learned Debts Recovery Tribunal and also to the admission made by the Financial Creditor before the Ld. Debts Recovery Tribunal, Kolkata where the Financial Creditor admitted to the realization of entire sale proceeds and also to the issuance of sale certificate and confirmation as per the provisions of the SARFAESI Act, 2002 on 22 December, 2020. Such fact shall also be evident from the order dated 06 January, 2021 passed in SA 107 of 2020 [Annexure E of the Reply]. Analysis Findings 7. A perusal of the Order dated 18 March, 2021 [at page 14 of the Reply] of this Adjudicating Authority, shows the recording that the Bank has taken recourse to the power of SARFAESI Act and auctioned some of the properties mortgaged in its favour resulting in the liability being brought down from approximately Rs.7 crore to approximately Rs. 2 Crore. 8. Further, as per the Ld. Debt Recovery Tribunal Order dated 06 January, 2021, in S.A. No. 107 of 2020, where it records that As per Respondent in this matter nothing survived as SARFAESI proceeding has been disposed of since applicant has been given consent for sale of the property And property was sold an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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