9911796707
TMI Blog2025 (4) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 7 Application and initiated the Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor ("CD"). Aggrieved by which order this Appeal has been filed. 2. Brief facts of the case necessary to be noticed for deciding the Appeal are: i. The Financial Creditors - Respondent Nos.1 to 4 with one Barclays Bank PLC extended Term Loan Facility to the tune of USD 45 million to M/s Svizera Holdings B.V. (Principal Borrower), a subsidiary company of the CD. The loan was extended under a Facility Agreement dated 24.09.2007. The CD stood as a Guarantor. The Barclays Bank LLC, Hong Kong L King Branch acting as Agent and the Offshore Security Trustee of the of the Financial Creditors. ii. The Principal Borrower - Svizera, Netherlands as well as the CD failed to repay the amounts due on the respective due dates, hence, as per the guidelines of RBI the account of Borrower - Svizera, Netherlands was classified as Non- Performing Assets ("NPA") by Respondent Banks on different dates in the year 2011. The Agent Barclays Bank PLC, Hongkong Branch, as instructed by the Financial Creditors issued a notice dated 03.02.2012 to the Borrower as well as Corporate Guarantor. A D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Narayan as an IRP. vii. Challenging the order dated 15.10.2024, this Appeal has been filed. 3. When the Appeal came for consideration, learned Counsel for the Appellant submitted that Appellant is willing to deposit the entire principal amount as referred in Part-IV of Section 7 Application. This Tribunal passed an interim order on 18.10.2024 to the following effect: "18.10.2024: Ld. Counsel for the appellant submits that the appellant is ready to deposit the entire amount referred to in Part- IV of Section 7 application and he has depositing the demand draft of Rs.110/- crores (Rupees One Hundred Ten Crores) by tomorrow. He further submits that balance principal amount shall be paid within 15 days. 2. Counsel for the respondent seeks liberty to communicate the appellant the figure as per all the four banks within a week. 3. List this appeal on 29.10.2024. 4. In the meantime, no further steps shall be taken in pursuance of the impugned order dated 15.10.2024 without prejudice to the rights of both the parties. 4. In pursuance of different orders passed by this Tribunal, the Appellant as on date has deposited total amount of Rs.369.11 crores in this Tribunal. On the Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incipal Borrower paid 3.276 million euros equivalent to approximate USD 5.32 million. The Appellant and CD - Maneesh Pharmaceuticals Ltd. Is having manufacturing units in Mumbai and Himachal Pradesh and engaging in export of life saving Anti TB drugs to more than 60 countries through WHO contracts and employs about 1800 staff/ workmen across the country. The Company does not have any other financial obligations or borrowings apart from the present guarantee obligation and the Company has already deposited monies more than what is actually due to the Banks herein. It is submitted that the proceedings under the IBC are not recovery proceedings. The Appellant has also established that the interest has been calculated in contravention to the established principles of accounting and against the RBI Guidelines. The Appellant has already deposited Rs.369.11 crores in the Registry of this Tribunal, whereas the Banks are still adamant and pressurising the Appellant to pay the wrongly calculated monies against their alleged claim and they have not shown their willingness to file Section 12 Application for withdrawal of Section 7 proceedings. Learned Counsel for the Appellant has also referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tigation which took place between the parties with respect to default committed by Principal Borrower and the CD. The Adjudicating Authority in the impugned order has recorded a categorical finding of existence of 'debt' and 'default'. The Adjudicating Authority also noted in its order that settlement proposal submitted by the CD was rejected by the Financial Creditors, which was noticed in paragraph 61 of the impugned order. It is useful to extract paragraphs 61 and 62 of the impugned order, which are as follows: "61. The Petitioners, in their reply to additional affidavit dated 28.11.2023 filed by the Corporate Debtor, had brought on record two letters dated 30.11.2023 and 08.12.2023 whereby the Corporate Debtor made settlement proposals to the Petitioners which were, however, rejected by the Petitioners. The Petitioners argue that the proposals dated 30.11.2023 and 08.12.2023 also amounts to acknowledgement of debt and default and this Tribunal on being satisfied with the same, is bound to admit the instant application. The issue of bar of limitation has already been decided and accepted by the Corporate Debtor that the petition is within limitation. 62. Considering the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 7 Application and for initiation of CIRP against the CD. We, thus, uphold the order of Adjudicating Authority directing for admission of Section 7 Application. 13. We, however, are not unmindful of the fact that the Appellant has deposited in this Tribunal an amount of Rs.369.11 crores, which according to the Appellant will fully satisfy the outstanding of the Financial Creditors along with interest. 14. The dispute between the parties regarding charging of penal interest and charging of interest on interest or other issues regarding computations, are not the issues, which need to be examined and decided in these proceedings. 15. The Hon'ble Supreme Court in GLAS Trust Company LLC vs. BYJU Raveendran & Ors. in Civil Appeal No.9986 of 2024 decided on 23.10.2024 has laid down the law that for withdrawal of CIRP, the appropriate course open for the parties to initiate proceedings under Section 12A with Regulation 30A. Thus, for withdrawal of the proceedings, appropriate measures have to be taken under Section 12A and Regulation 30A of the CIRP Regulations before the Adjudicating Authority. By interim order passed by this Tribunal on 18.10.2024, the Committee of Creditors (" ..... X X X X Extracts X X X X X X X X Extracts X X X X
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