9911796707
TMI Blog2023 (5) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... tes for PNB Consortium and Canara Bank in I.A. Nos. 586, 1709, 3115 of 2022. Mr. Pawan Kumar Bansal, Mr. Ahsan Ul haq, Advocates in I.A. No. 762 of 2022. Ms. Bani Brar, Advocate in I.A. No. 296, 427 of 2022. Mr. Rajesh Kr. Gautam, Mr. Anant Gautam, Mr. Sumit Sharma, Advocates in I.A. No. 276 of 2023. Mr. Krishnendu Datta, Sr. Advocate with Ms. Misha, Mr. Rahul Gupta, Ms. Mahina Sareen, Mr. Satyajit Bose, Advocates in I.A. No. 845, 4009 of 2022. Ms. Misha, Mr. Satyajit Bose, Advocates in I.A. No. 315,316 of 2023. Mr. Ramji Srinivasan, Sr. Advocate with Mr. Kuber Dewan, Ms. Neeharika Aggrawal, Ms. Trisha Roychaudhuri, Mr. Kaustubh Srivastava, Ms. Shruti Pandey and Ms. Sharmistha Ghosh, Advocates in I.A. No. 593 of 2019. Mr. Abhirup Dasgupta, Mr. Ishaan Duggal, Mr. Pathik Choudhury, Advocates for Tata Power Consolidated Provident fund & for Pramerica Life Insurance Company. Ms. Megha Karnwal, Mr. Sanjay Kapur, Advocates for SBI in I.A. No. 3579/2022. Mr. Arun Kathpalia, Sr. Advocate with Mr. Gaurav Juneja, Mr. Aayush Jain, Ms. Monika Vyas, Advocates for SBI (Applicant) in I.A. No. 985/2023. Mr. Shivam Shukla, Mr. Devansh Srivastava, Advocates in I.A. No. 2424 of 2022. Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Group Entities which can continue meet all their payment obligation (both financial and operational) as and when they become due; b) "Amber Entities" : Domestic Group Entities which are not able to meet all their obligations (financial and operational), but can meet only operational payment obligations and payment obligations to senior secured financial creditors; and c) "Red Entities" : Domestic Group Entities which cannot meet their payment obligations towards even senior secured financial creditors, as and when such payment obligations become due. The classification of entities into "Green", "Amber" and "Red" has been done by the Resolution Consultant appointed by the New Board of Respondent No.1 based on a 12-month cash flow based solvency test." 5. The JIICL was categorized as "Green" Entity and included in Annexure-E. The JRPICL was referred to as "Amber" Entity in order dated 11.02.2019, but by subsequent order dated 19.09.2019, the JRPICL was categorized as "Green" Entity. An affidavit dated 31.03.2022 was filed by IL&FS - Respondent No.1 where JIICL was claimed to be reassessed by the Resolution Consultant for 12 months, i.e. from January 1, 2022 to December 31, 202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eflected in order dated 11.02.2019 and 19.09.2019, Respondent No.1 had no authority or jurisdiction to unilaterally categories the Entity as "Red". Categorization as "Red", is only with the object to deny the repayment to the Lenders, which is the obligation of the IL&FS Entities as per the facility document. It is submitted that the basis of the affidavit filed with regard to JIICL and JRPICL was the ground that annuity was not received from the State of Jharkhand, whereas subsequent to filing of affidavit, annuities have been received from the State of Jharkhand. With regard to JIICL, out of 08 outstanding annuities, six have already been received, therefore, there is no reason to presume that two pending outstanding annuities will not be received. With regard to JRPICL, annuities have been received of INR 232 Crores as of 18.03.2023, which clearly makes the Entity fully solvent and to enable to discharge its obligations. 10. Shri Ramji Srinivasan, learned Senior Counsel appearing for the Respondent submits that re-categorization of the JIICL and JRPICL was due to reason that they were unable to serve their debt obligations and other dues and both were only able to discharge the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Tribunal and asking leave of the Tribunal to re-categorize the Entity. 13. Now coming to the JIICL, from the facts brought on the record, it does appear that the Entity has received annuities from the Government of Jharkhand last by March 2023. The cash balance in the escrow account of the Entity has increased to INR 158 crores. The Respondent themselves has come with the case that the Resolution Consultant has recommended for its categorization into "Green" subject to certain waivers to be granted by Lenders. In the note which has been submitted on behalf of Respondent No.1 during the course of submission with regard to JIICL, following has been stated: "(i) Upon negotiations with the government of Jharkhand, JIICL was able to receive annuities of INR 160 Crores approx.. in March 2023. (ii) Consequently, A&M had identified certain conditions that need to be met in order to convert JIICL from 'Red' to 'Green' for the solvency test for the period from Jan' 23 to Dec' 23. (iii) The said conditions include obtaining certain waivers from the lenders (i.e (a) Obtaining DSRA and MMRA waiver from the lenders (b) Renegotiating interest rate to be linked to MCLR (vis-à ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 06.08.2022 in proceedings against Sadbhav Engineering Limited has also been passed against JRPICL of INR 155.12 Crores (INR 83 Crores principal amount + interest and other costs as on 30.04.2023) (vii) Considering that, (a) the aforesaid arbitral awards have been passed after October 15, 2018 (b) the awards have been challenged and/ or are in the process of being challenged by JRPICL, (c) the estimated liability (in case the awards are not stayed or set aside) that has occurred against JRPICL on account of the said awards is of approximately INR 269 Crores (inclusive of interest and other costs as on April 30, 2023), and (d) the decree holders have initiated proceedings under Section 9 of the Arbitration and Conciliation Act, 1996 seeking inter alia directions on JRPICL to disclosed a list of its assets, the aforesaid liabilities have to be considered as part of the solvency assessment for JRPICL for the current testing period from January 01, 2023 to December 31, 2023. (viii) In view of the aforesaid, the solvency status of JRPICL for the testing period from January 2023 to December 2023 continues to be 'Red'." 16. The Resolution Consultant having already recommende ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
