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TMI Blog2024 (5) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... on (2) of SARFAESI Act and the date of NPA was mentioned as 14.02.2020. The sheet-anchor submission of learned Counsel for the Appellant is on renewal letter dated 26.07.2019 issued by the Syndicate Bank (now Canara Bank). Renewal of sanction for one year is the renewal of working capital limit, as noted in the letter. Renewal of working capital limit is not relatable to the default committed by the Corporate Debtor in fulfilling the obligations under the Sanctioned Facilities. When on 14.02.2020, accounts of the Corporate Debtor were declared as NPA, it clearly means that default was committed by the Corporate Debtor in carrying out his financial obligations. Renewal of sanction has nothing to do with the date of default committed by the Corporate Debtor in fulfilling its financial obligations. Thus, the very basis of the submission of learned Counsel for the Appellant that since renewal of working capital limit was renewed for one year upto 25.07.2020, hence, the date of default is 25.07.2020, has no basis and is to be rejected. The application under Section 7 filed by Canara Bank was not barred by Section 10A as contended by the Appellant. The Adjudicating Authority having found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Creditor under the SARFAESI Act and an issue was raised in the Appeal that Appellant - M/s Rajgaria Timber Private Limited was entitled for 270 days credit. The Appeal was disposed of, directing the State Bank of India ( SBI ) to decide the issue raised in the Writ Petition, which is still pending before the SBI. (v) On 15.02.2022, a letter was issued by Financial Creditor to the Corporate Debtor as well as Corporate Guarantors, informing the dues as on 14.03.2022 of Rs.12,86,89,020.28/-, which was requested to be paid within 10 days. Notice was given that failing the payment, the Bank shall take steps under the IBC. (vi) No payments having been made, Section 7 Application was filed by the Financial Creditor, claiming a debt of Rs.13,78,35,737.34/- as on 31.08.2022, mentioning the date of default as 14.02.2020. Notice was issued in Section 7 Application, to which reply was filed by the Corporate Debtor. Rejoinder affidavit was also filed by the Canara Bank. (vii) The Adjudicating Authority vide order dated 02.02.2024 admitted Section 7 Application holding that debt and default has been proved by the Financial Creditor. The Suspended Director of the Corporate Debtor aggrieved by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re against the SBI and not between the Corporate Debtor and the Canara Bank. It is submitted that according to own showing of Appellant, Writ Petition filed by the Corporate Debtor before the Hon ble Supreme Court was dismissed as withdrawn, which order has been brought on record by the Appellant itself in the additional affidavit. It is further submitted that in Part-IV of Section 7 Application, 14.02.2020 was mentioned as date of default, hence, there is no occasion to hold Application being barred by Section 10A. 6. We have considered the submissions of learned Counsel for the parties and haver perused the records. 7. We may first notice the Part-IV of the Application under Section 7 filed by Financial Creditor, where particulars of financial debt and date of default have been mentioned. Part-IV, Item-2, mentioning about the amount of claim and date of default is as follows: 2 AMOUNT CLAIMED TO BE IN DEFAULT AND THE DATE ON WHICH THE DEFAULT OCCURRED (ATTACH THE WORKINGS FOR COMPUTATION OF AMOUNT ANP DAYS OF DEFAULT IN TABULAR FORM) Rs,13,78,35,737.34 as on 31.08.2022 and the default occurred on 14.02.2020 when the account was declared NPA. Copies of the calculation sheets showi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Floor Room No l0 Kolkata 700010 Subject: - Renewal df Your working capital limit under consortium banking arrangement With reference to the above, the competent authority has sanctioned the renewal of working capital Limits to be valid for one year from oi date of sanction i.e., upto 25.07.2020 to M/s Ananya Wood Private Limited under consortium banking arrangement lead by State Bank of India on the terms and conditions mentioned below. A fresh and complete set of credit proposal shall be sent to us at least 45 days before the expiry of the limits, to enable us to consider renewing the limits. Any breach in any of the terms and conditions relating thereto will be considered unauthorised. (Rs. in Crore) Facility Limit ROI/Commn. Margin Security SODH 6.00 1 year MCLR (8.60% p.a. at present) + 3.20% + penal interest of 1.00% i.e. 12.80% p.a. at present 25% Primary: Hypothecation of entire current assets, Stock Receivables and other current assets both present and future of the company on pari passu basis with SBI. Collateral: Mentioned below. ILC/FLC 4.00 Usual Commission 25% Cash Margin* Penal interest of 1% for non conversion of agricultural land is charged in line with SBI. . 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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