9911796707
TMI Blog2017 (12) TMI 1652X X X X Extracts X X X X X X X X Extracts X X X X ..... or Respondents: - Mr. Rajiv S. Roy, Avrojyoti Chatterjee, Mr. Abhijit S. Roy, Ms. Jayshree Saha, Advocates, Mr. Arnav Dash, Advocate, Mr. Abhishek Agarwal, Advocate for SBI. JUDGMENT Sudhansu Jyoti Mukhopadhaya, This appeal has been preferred by Mr. Ajay Agarwal, Director/shareholder of M/s. Ashok Magnetics Limited ('Corporate Debtor') against the order dated 4th September, 2017 passed by Adjudicating Authority (National Company Law Tribunal), Chennai in Company Petition No. 551(IB)/CB/2017, whereby and whereunder the application preferred by Respondents- the Central Bank of India and the State Bank of India ('Financial Creditors') under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "I&B Code") has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India is concerned, learned counsel for the Appellant submitted that there is similar 'mismatch of figures and dates of default' including Cash Credit facility, Letter of Credit facility, Fixed Deposit Credit etc. Following facts have been highlighted: " 2. CENTRAL BANK OF INDIA (R1) : Description Amount i. Part IV, Form 1 at Pg. 95 Rs. 12,96,57,829.19 as on 30.11.16 ii. See SBI S.13(2), Sarfeasi Notice (Pg.177) dt. 17.12.15 wherein NPA dt. 26.08.15 Rs.10,98,76,416.00 under 2 facilities namely: CC - Rs. 620,21,860 Inland LC Devolved - Rs. 4,78,54,556 2.1 For CC Facility: Description Amount The breakup of the CC facility as on Pg. 106, the balance outstanding amount on date of NPA (26.08.15) Rs. 5,98,81,058.19 See Statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the erstwhile 'Board for Industrial and Financial Reconstruction' (BIFR) under the provision of the Sick Industrial Companies (Special Provisions) Act, 1956 ("SICA") (now repealed), based on its audited accounts for the financial year ended on 31st March, 2015 was calculated. It was brought to our notice that the Respondents have also taken steps under Section 13(2) of the SARFAESI Act against the 'Corporate Debtor' as well as the guarantors to repay entire outstanding as on 16th December, 2015. The parties have moved before the Debt Recovery Tribunal-II, Chennai, being O.A. No. 114/2017, seeking recovery of the outstanding loan amount. The said matter is pending before the Debt Recovery Tribunal. According to learned counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17, which has been calculated, taking into consideration the interest payable in the meantime and the amount, if any, recovered under other proceedings. Apart from the aforesaid fact, we are of the view that mere mismatch of the figures will ipso facto not invalidate the order initiating 'Corporate Insolvency Resolution Process' under Section 7 of the 'I&B Code'. 12. The provisions of Sections 7 and 9 of the 'I&B Code' fell for consideration before the Hon'ble Supreme Court in "M/s. Innoventive Industries Ltd. Vs. ICICI Bank & Anr.─ 2017 SCC OnLine SC 1025", wherein the Hon'ble Supreme Court observed and held: "29. The scheme of Section 7 stands in contrast with the scheme under Section 8 where an operational creditor is, on the oc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information utility or other evidence produced by the 'Financial Creditor' to satisfy itself that a default has occurred. The Hon'ble Supreme Court further held that "it is of no matter that the debt is disputed so long as the debt is "due" i.e payable unless interdicted by some law or has not yet become due in the sense that it is payable at some future date." 14. In the present case, the Appellant raised dispute and pleaded mismatch of debt amount, but it has not been disputed that some debt is "due" and is payable to the 'Financial Creditor' and the 'Corporate Debtor' has defaulted in making such payment. 15. For the reasons aforesaid, no interference is called for against the impugned order dated 4th September, 2017 passed in Company ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
