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TMI Blog2023 (9) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... dvocate with Mr. Kaushik Mishra, Advocate for R-1. Mr. Abhishek Anand, Mr. Mohak Sharma and Mr Supriyo Baherjee, Advocates for R-2 JUDGMENT ASHOK BHUSHAN, J. Company Appeal (AT) (Ins.) No. 1031 of 2023 by two Appellants i.e. Perfect Nivesh Infra Private Limited and Ms. Chetana Shah, Suspended Director of the Corporate Debtor has been filed challenging order dated 25.04.2023 by which order Section 7 application filed by Edelweiss Asset Reconstruction Company Ltd. (Respondent herein) being C.P.(IB) 1166/MB/2020 has been admitted finding debt and default on the part of the Corporate Debtor. Company Appeal (AT) (Ins.) No. 1055 of 2023 has been filed by Perfect Nivesh Infra Private Limited and Ms. Chetana Shah, Suspended Director of the Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Engineering Products Ltd. and Karla Engine Components Ltd. (jointly referred to as the Perfect Group). The restructuring package was revoked on 22.09.2016. Another restructuring proposal was accepted by the Respondent on 10.10.2017 which was subsequently revoked on 01.06.2018. C.P.(IB) 1166/MB/2020 was filed by the Respondent against Perfect Engine Components Private Ltd. to which reply was filed by the Corporate Debtor. Adjudicating Authority dismissed the Section 7 application holding that there was no default by the Appellant and secondly the petition was barred by limitation on 10.08.2021. The Respondent aggrieved by the order filed Company Appeal (AT) (Ins.) No. 840 of 2021, which was allowed by this Tribunal on 22.12.2022 setting as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or. The application under Section 7 was admitted on 06.06.2023 finding debt and default. 4. We have heard Shri U. K. Chaudhary, learned senior counsel for the Appellant in both the Appeals. Learned counsel for the Appellant submitted that facts and ground to challenge orders in these Appeals are identical. 5. Shri Chaudhary adverting to his submission in Company Appeal (AT) (Ins.) No. 1031 of 2023 submits that there was allegation made by the Corporate Debtor that proceedings initiated by the Edelweiss Asset Reconstruction Company Ltd. were fraudulently and maliciously initiated, hence, the proceedings deserve to be dismissed under Section 65 of the I&B Code. It is submitted that the said submission was advanced before the Adjudicating Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd shows that the 'Corporate Debtor' has been consistently acknowledging its 'debt' from 31.03.2010 onwards by way of letters in Restructuring Packages, and also by way of communication the Appellant/'Financial Creditor' for Restructuring, apart from the liability being shown in the Balance Sheets. 9. For all the aforenoted reasons we are of the considered view that the Section 7 Application is not 'barred by Limitation', and that there is a 'debt' and 'default', and the facts of the instant case are squarely covered by the ratio of the Hon'ble Apex Court in 'Dena Bank (now Bank of Baroda)' (Supra)." 8. It is to be noticed that against the said judgment the matter was taken in the appeal by Perfect Engine Components Private Ltd., the Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the present case debt and default is not an issue which is under question. Twice Restructuring of the facilities granted by the Financial Creditor in the years 2014 and 2017, which were not honoured and the ground which was raised by the Corporate Debtor - Perfect Engine Components Private Ltd. has been repelled by the Hon'ble Supreme Court by its judgment, as noticed above. The Corporate Debtor having committed default, initiation of Section 7 proceeding by Assignee of the State Bank of India cannot be said to be malicious or fraudulent. The State Bank of India has assigned its debt to the Edelweiss Asset Reconstruction Company Ltd on 19.03.2014 and assignee on the strength of assignment has initiated the proceeding under Section 7. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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