9911796707
TMI Blog2017 (7) TMI 1063X X X X Extracts X X X X X X X X Extracts X X X X ..... , Ms. Jasmine Kottai, Advocates JUDGMENT Per CHIEF JUSTICE (RETD.) M.M.KUMAR, HON'BLE PRESIDENT The Punjab National Bank (for brevity 'PNB-Financial Creditor') has filed the instant application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (for brevity 'the Code'). with a prayer for triggering the insolvency resolution process in the matter of Bhushan Power and Steel Limited (for brevity the 'Corporate Debtor). It is appropriate to mention that PNB 'Financial Creditor' is a body corporate constituted by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its registered office at 7, Bhikaji Cama Place, New Delhi. The 'Corporate Debtor' has CIN No. U2710 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RBI reference rating is Rs. 632,59,00,000/- (Rupees Six Hundred Thirty Two Crores and Fifty Nine Lakhs only). c) The total amount of facilities is Rs. 4383,12,92,271/- (Rupees Four Thousand Three Hundred Eighty-Three Crores Twelve Lakhs Ninety Two Hundred and Two Hundred Seventy One only). There is full description of the individual facilities and the amounts disbursed thereunder which have been set out under the working capital facilities, term loan facilities and external commercial borrowings facilities. 4. The defaulted amount within the meaning of Section 3 ( 12) has also been disclosed under the Working Capital Consortium Agreement. The defaulted amount as on 31.05.2017 in respect of fund based working capital facilities is Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnished by Mr. Sanjay Singhal and Ms. Aarti Singhal as guarantors have also been placed on record (Annexures- 24 to 42). 5. From the perusal of the record, we are satisfied that the 'Financial Creditor' has proved by overwhelming evidence that default has occurred, which meets the requirement of Section 3(11) & (12) read with Section 7(3)(a) and Section 7 (5) of the Code. We further find that the application is complete in all respects as the Insolvency Professional, Mr. Mahender Kumar has also been proposed. 6. When the matter came up for consideration on 13.07.2017 the 'Corporate Debtor' sought time to file objections and the matter was listed for arguments on 19.07.2017. 7. At the hearing on 19.07.2017, Mr. U.K. Chaudh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the moratorium flows from the provisions of Section 14 (1) (a), (b), (c) & (d) and thus the following prohibitions are imposed: "(a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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