9911796707
TMI Blog2019 (1) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... ency Resolution Process of Hotel Reeva Private Limited (hereinafter called the 'Corporate Debtor') on the ground, that the Corporate Debtor committed default on 01.10.2014 in repayment of facilities granted to the Corporate Debtor to the extent of 32,95,42,170/-, under Section 7 of Insolvency and Bankruptcy Code, 2016 (hereafter called the 'Code') read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. The Petitioner enclosed sanction letter dated 03.06.2013 which shows that following facilities were sanctioned to the Corporate Debtor; Sr. No. Nature of Facility Amount 1 Term Loan I 63,00,000.00 2 Term Loan II 18,00,00,000.00 3 Term Loan III 4,00,00,000.00 4 Term Loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elines. 5. The Corporate Debtor assails the Petition on various grounds and let us discuss one by one. a. The counsel for the Corporate Debtor submitted that the petition is incomplete and suffers from various flaws. However, ongoing through Form 1 filed by the Petitioner, we are of the view that necessary details required under the Form 1 are provided by the Petitioner. b. It is contended that the Petitioner failed to qualify the alleged financial debt within the parameters of the Code. However, since it is a term loan granted by a Financial Institution this argument is rejected in limine in view of Section 5(8)(a) of the Code which defines a Financial Debt as debt with interest, if any, which is disbursed against the consideration fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other term loans to the extent of outstanding due as on that date, that being the situation the occurrence of default on 01.10.2014 that too just few days before the new sanction and renewal of loan is not correct and in fact at no point of time the Corporate Debtor defaulted. For this contention the Petitioner responded saying that even though the aforesaid sanction was granted, the loan was not disbursed. This Bench is of the view that since it was categorically said in the sanction letter dated 20.10.2014 that the bank has discretion to revoke or cancel, alter, vary, rescind or amend and of the conditions of the sanction, the Corporate Debtor cannot take shelter under the sanction letter and say that default has not occurred. The fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... juncture. h. The next contention of the Corporate Debtor is that the Petitioner claimed a sum of Rs. 32,95,42,170/- in the petition whereas the amount mentioned in the SARFAESI notice dated 07.01.2015 is Rs. 26,96,96,404/- hence there is no uniformity in the amount claimed and the amount stated to be in default. This difference is due to the interest for the subsequent period and hence this contention will not hold good. i. The Corporate Debtor submitted that there is some discrepancy in the interest calculation. This kind of grievance of the Corporate Debtor can be made to the Insolvency resolution professional at the time of the admission of the claim of the Petitioner and this cannot come in the way of admission of this petition. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Corporate Debtor that they have repaid the loan or there is no outstanding in the loan account but their case hangs on the non production of a sanction letter which will alter the date of default at the most but the fact is that there is a continuing default in the payment of the loan and the starting point of default is 01.10.2014. In view of this this, petition cannot be thrown out as contended by the Petitioner. l. The Corporate Debtor submits that there already exists an ongoing/ pending efficacious legal remedy adopted by the Petitioner for recovery and therefore this application cannot be allowed. Prior to the advent of Insolvency and Bankruptcy Code, 2016, under the provisions of Recovery of Debts (due to Banks and Financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and has also placed the name of the Insolvency Resolution Professional to act as Interim Resolution Professional and there being no disciplinary proceedings pending against the proposed resolution professional, therefore the Application under sub-section (2) of section 7 is taken as complete, accordingly this Bench hereby admits this Petition prohibiting all of the following of item-I, namely: I (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 rig ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
