TMI Blog2000 (8) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... ding up of the company. The company preferred appeal No. 40 of 1999 before AAIFR but the same was dismissed on 21-6-1999. 2. While the winding up matter on the recommendation of the BIFR is pending before this Court, the company in question has objected to its winding up on the recommendation of the BIFR and has come up with a Rehabilitation- cum -Repayment Scheme. The original proposal was submitted on 28-10-1999 and modified scheme has been presented on 28-4-2000 through application A-14. A.K. Bhargava, Chairman- cum - Managing Director of the company has filed affidavits in support of the such original scheme as also to back the modified one. 3. The financial institutions present before the BIFR were the following: ( i )IIBI. ( ii )Syndicate Bank. ( iii )PICUP. ( iv )UPSIDC. 4. Really speaking, what the company has presented before the court is not a Scheme of Rehabilitation. In true sense of the term, it is just a Scheme of Repayment of the loan of creditors named above. It is in the nature of one time settlement (OTS) with the above named financial institutions. The original schedule of repayment proposed by the company takes the cut off date as 31-3-2000. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 12.12 lakhs)." 5. The first instalment is proposed to be paid on 31-12-2000 and the last one on 31-5-2001. 6. IIBI was the operating agency of BIFR. An affidavit A-16 has been filed on its behalf. Annexure-A is a copy of its letter dated 7-4-2000 relating to the proposal made by the company for OTS. In substance, it has agreed to the OTS proposal on the following terms and conditions: " 1. Scheme to be sanctioned by the Hon ble High Court of Allahabad. 2. Company to pay to IIBI 100 per cent of its principal amount of Rs. 113 lakhs plus interest at PLR with effect from 1-7-1999 to 31-3-2000. 3. Payment be made by monthly equal instalments commencing from the 7th month and ending on the 24th month from the date of sanction of the Scheme by the Hon ble High Court of Allahabad. 4. Reimbursement of Rs. 22,940 by the company towards share of insurance premium paid by IIBI within 7 days from the date of sanction of the scheme. Thereafter the company itself to renew the insurance policies to the satisfaction of FI s/Bank. 5. Token down payment against the OTS as deemed fit by the Hon ble High Court of Allahabad. 6. No additional term loan/working capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x months from the date of the sanction of the scheme by Hon ble High Court and the repayment shall not be linked with any condition and we shall make the requisite written undertaking before Hon ble High Court to pay the amount on due dates. ( d )As gesture of goodwill, we shall try to pay 20 per cent of the OTS amount within a week immediately after the sanction of the Scheme by Hon ble High Court." 9. The bank also considered the letter dated 7-4-2000 of IIBI regarding OTS and by letter dated 24-4-2000 (Annexure 3 to the affidavit A-15) laid down the following terms and conditions for accepting OTS: " 1. The company/borrower shall make down payment at 20 per cent of the revised offer of Rs. 157.19 lakhs and Rs. 13.23 lakhs within two weeks of approval of the scheme by the Hon ble High Court at Allahabad. 2. The company/borrower shall pay balance revised offer amount within 24 months in monthly instalments with a moratorium of six months from the date of final sanction of the proposal/scheme by the Hon ble High Court. The first instalment will commence from the 7th month. 3. The company/borrower shall pay future interest at PLR simple from 1-4-2000 on reducing bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Anurag Khanna, the learned counsel for PICUP advanced arguments. I heard them at length. It has been submitted by the learned counsel for PICUP that though it has not filed any reply/objection to the repayment schedule (OTS), but it would agree to the scheme as may be sanctioned in respect of the debt due to the IIBI and Syndicate Bank. While arguing, Shri Janardan Sahai, the learned counsel for the company, submitted that though the company is not agreeable to the modified conditions sought to be imposed by IIBI through its letter dated 4-5-2000 and by the Syndicate Bank in its letter dated 24-4-2000, yet it would make down payment of Rs. 3 lakhs to each of the creditors to arrive at a solution as the company is seriously concerned in its revival. It has been urged that it is not at all possible to abide by the demand of the Syndicate Bank of 20 per cent down payment. It has been stressed that IIBI, the lead financial institution, was the operating agency of BIFR and as such, all other banks/financial institutions must fall in line with IIBI in the matter of the acceptance of repayment schedule as contained in IIBI s letter dated 7-4-2000. 16. I have considered the respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TS) as per the directions and conditions detailed hereinbelow: 1. The company shall pay to IIBI, Syndicate Bank, PICUP and UPSIDC 100 per cent of the principal amount due to each of them as crystallized before BIFR (Rs. 113 lakhs of IIBI, 142.87 lakhs of Syndicate Bank, 82.15 lakhs of PICUP and 6.16 lakhs of the UPSIDC). 2. The company shall pay interest at PLR in respect of the above mentioned debts with effect from 1-7-1999 to 31-3-2000. 3. The company shall make down payment against the OTS to IIBI, Syndicate Bank, PICUP and UPSIDC at the rate of 5 per cent of the amount arrived at after adding up PLR interest for the period 1-7-1999 to 31-3-2000 to the amount of debt due to each of them as per serial Nos. 1 and 2 above. 4. 5 per cent down payment as mentioned at serial No. 3 above shall be made by the company to IIBI, Syndicate Bank, PICUP and UPSIDC by 31-8-2000. 5. The company shall pay PLR interest with effect from 1-4-2000 on reduced balance basis till the final payment is made as directed in serial No. 6 below. 6. There shall be a moratorium for six months and the company shall pay the balance amount in 18 equal monthly instalments, the first of which wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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