Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1481 - AT - Insolvency and BankruptcyMaintainability of application u/s 7 of the Insolvency and Bankruptcy Code, 2016 - outstanding dues on the part of corporate Debtor or not - main plea taken by the Appellant is that there was no default on the part of the ‘Corporate Debtor’ and therefore, the application under Section 7 was not maintainable - HELD THAT:- It was brought to the notice of the Adjudicating Authority that the ‘Financial Creditor’ in the Recall Notice given on 12th September, 2018 intimated the ‘Corporate Debtor’ that it failed to comply with the concession mentioned in the ‘Master Restructuring Agreement’ dated 14th February, 2017. The Bank had issued Recall Notice demanding repayment of Part-B debt of ₹ 78,27,62,198/- within specified date, but the ‘Corporate Debtor’ failed to repay the loan as demanded by the ‘Financial Creditor’. The ‘Corporate Debtor’ in terms of Clause 7.1 of ‘Event(s) of Default’ of ‘Master Restructuring Agreement’ failed to ensure that the ‘Gujarat State Road Development Corporation Limited’ has purchased equity share of ₹ 210 Crores out of ₹ 410 Crores debt converted into equity within 90 days in terms of ‘Restructuring Agreement’ thereby defaulted in terms of the Agreement - the debt and default is proved and the Adjudicating Authority did not commit error in admitting Section 7 application under ‘I&B Code’. Appeal dismissed.
|