TMI Blog2018 (1) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... d copies of other documents proving existence of Financial Debt. The Petitioner Bank has proposed the name of an Interim Resolution Professional and filed his Written Communication. Moreover, this Petition filed by the Financial Creditor is complete in all respects. Therefore, there are no grounds to reject this petition. This Application deserves to be admitted and it is accordingly admitted under Section 7(5) of the Code. - C.P. (IB) NO. 135/7/NCLT/AHM/2017 - - - Dated:- 19-12-2017 - MR. BIKKI RAVEENDRA BABU AND MS. MANORAMA KUMARI, JJ. For The Petitioner : Sahil Shah, Animesh Bisht and Abhishek Mukherjee, Ld. Advs. For The Respondent : Arjun Sheth, Ld. Adv. ORDER Per: Ms. Manorama Kumari, Member (Judicial) 1. Bank of Baroda, through its Deputy General Manager of Grade/Scale-VI, filed this Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 [ IB Code for short] read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, ( IB Rules for short) against Vimal Oil and Foods Limited with a request to initiate Corporate Insolvency Resolution Process treating it as 'Corporate Debto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limits as stated in the Third Schedule; (ii) Limits under the Letter of Credit Facilities was enhanced to ₹ 24 Crores. The total debt granted to the Corporate Debtor on further renewal and enhancement of the above said facilities under the Second Supplemental Working Capital Consortium Agreement is ₹ 47,00,00,000. 3.3 Thereafter, pursuant to execution of Third Supplemental Working Capital Consortium Agreement dated 31st January, 2011 the above said facilities were further renewed and enhanced as detailed below as per Third Schedule of the said Agreement; (i) Limits under the Cash Credit Facility was enhanced to ₹ 27 Crores with certain sub-limits as per the Third Schedule of the said Agreement; (ii) Letter of Credit Facilities upto an overall limit of ₹ 44.43 Crores along with a sub-limit in the form of Buyer's Credit Facility upto a limit of ₹ 27 Crores; (iii) Forward Cover limit upto ₹ 0.43 crores; (iv) A Corporate Loan of ₹ 5.83 Crores; (v) A Short Term Loan of ₹ 25 Crores The total debt granted to the Corporate Debtor under the Third Supplemental Working Capital Consortium Agreement is ₹ 77,26, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Details of LCs that were issued and which devolved along with outstanding amounts thereof 1. Gayatri Trading Co. 08491LCIS0005015 June 15, 2015 September 14, 2015 10, 23,75,000 9,21,37,500 2. Gayatri Enterprise 08491LCIS0004515 May 28, 2015 August 28, 2015 9,35,44,500 7,92,62,265 3. Akshar Commodity 08491LCIS0004215 May 09, 2015 August 11, 2015 7,47,85,200 9,80,783 Total 17,23,80,548.00 5. According to the Petitioner, as per the Computation of amount of default on part of the Corporate Debtor the following are the amounts in default; Computation of amount of default on part of Corporate Debtor as on August 31, 2017 and days of default Cash Credit Facil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various facilities granted by the Petitioner; and copies of financial statements of last three years of the Corporate Debtor. 7. The Petitioner proposed the name of Mr. Abhay N. Mamudhane as 'Interim Resolution Professional' and filed the Written Communication given by Mr. Abhay N. Mamudhane. 8. Vimal Oil and Foods Limited is a Company registered under the Companies Act. The Authorised Share Capital of the Company is ₹ 33,00,00,000. The Paid-up Share Capital of the Company is ₹ 30,02,00,000. 9. It is the case of the Petitioner, inspite of renewal and enhancement of various Facilities the Corporate Debtor failed to pay the amount due towards interest on various Facilities and therefore the account of the Corporate Debtor with the BOI was classified as 'NPA' on 9th November, 2015 and the Corporate Debtor was informed same vide Notices dated 1st March, 2016 and 7th May, 2016. 10. According to the Petitioner BOB, there is a debt due and payable from the Corporate Debtor and the Corporate Debtor has committed default in payment of such debt. 11. Petitioner served a copy of the Application on the Corporate Debtor. Corporate Debtor appeared thro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efault on the part of the Corporate Debtor in payment of the dues to the Financial Creditor. It is further stated in the objections that the Corporate Debtor had taken the facility of Cash Credit and Letter of Credit from the Financial Creditor and upon agreement of new schedule for the repayment there has been no withdrawals under the said Facilities. The Corporate Debtor annexed copies of the minutes of the meetings at Annexure R/2 and R/3 to their objections. On perusal of the Minutes of the Meeting of 17th Joint Lenders Forum consisting of Bank of India, Punjab National Bank, Bank of Baroda, IDBI, Syndicate Bank, Dena Bank held on 24th August, 2017, in relation to recovery/resolution plan in the account of the Corporate Debtor, the member Banks agreed in principle and will give their consent to Bank of India for taking up NCLT route after taking approval from the competent authorities; and all the lender Banks agreed to wait for one month for routing of transaction to improve and company to put up some concrete plan of recovery/resolution otherwise NCLT route will be explored. Therefore, the objection raised by the Corporate Debtor on this count is not entertained. 14. Heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... knowledged the debt (page 1617). The Credit Information Bureau of India Limited (CIBIL) also shows the status of the debt of Bank of Baroda in respect of Cash Credit Facility as Wilful Default (page 1218). Similarly, a perusal of page 1349 of the petition shows that CIBIL classified the Export Bill Discount Credit Facility granted by Bank of Baroda as doubtful. 21. In view of the judgment of the Honourable the National Company Appellate Tribunal in Innovative Industries Ltd. v. ICICI Bank Civil Appeal Nos. 8337 8338 of 2017, dated 31-8-2017, permission of the Joint Lending Forum is not necessary for a Financial Creditor to initiate Corporate Insolvency Resolution Process. Further the Financial Creditor issued a notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 recalling the entire debt relating to various banks including Bank of Baroda. 22. In the decision of the National Company Law Tribunal, Principal Bench, New Delhi, relied upon by the learned counsel appearing for the respondent in the matter of Jeevan Credit Leasing (P.) Ltd. v. King Airways Ltd. [Company Application No.(IB) 13/PB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly admitted under Section 7(5) of the Code. 29. This Adjudicating Authority hereby appoint Shri Abhay N. Manudhane, as 'Interim Resolution Professional' having address at 201, Shubh Ashish, 129, Model Town, Four Bungalows, Andheri West, Mumbai-400053, and having Registration No. IBBI/IPA- 001/IP-P00054/2017-18/10128 under Section 13(1)(c) of the Code. 30. The Interim Insolvency Resolution Professional is hereby directed to cause public announcement of the initiation of 'Corporate Insolvency Resolution Process' and call for submission of claims under Section 13(l)(b) read with Section 15 of the Code and Regulation 6 of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. 31. This Adjudicating Authority hereby order moratorium under Section 13(1)(a) of the IB Code prohibiting the following as referred to in Section 14 of the Code; (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, alie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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