TMI Blog2019 (5) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... such a form and manner as prescribed in the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The petitioner/financial creditor having fulfilled all the requirements of section 7 of the Code, the instant petition deserves to be admitted. - C. P. No. (IB) 515 / 7 /NCLT/AHM/ 2018 - - - Dated:- 2-4-2019 - MS. MANORAMA KUMARI Judicial Member Kunal P. Vaishnav for the financial creditor/petitioner. ORDER Dena Bank, incorporated under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (Act V of 1970), through authorised signatory, filed this petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the Code ) read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as the Rules ) seeking reliefs under section 7(5)(a) and section 13(1)(a), (b) and (c) of the Code. 2. That the applicant-Dena Bank, incorporated on May 26, 1938 having its office at Dena Corporate Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400 051, having PAN No. AAACD4249B is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ements/documents executed by the corporate debtor. Thereafter, the State Bank of India (lead bank) sent a notice dated December 23, 2016 under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) to the corporate debtor demanding to discharge full liabilities of ₹ 434,68,20,063.25 (rupees four hundred thirty-four crores sixty-eight lakhs twenty thousand sixty three and twenty-five paise only) as on December 15, 2016 along with future interest at the contractual rate on aforesaid amount together with incidental expenses, costs, charges, etc., within 60 days from the date of notice. Further, a compromise proposal dated November 30, 2017 was submitted by the corporate debtor for settlement of loan account with settlement amount of ₹ 135 (rupees one hundred and thirty-five crores only). That, the corporate debtor had admitted, acknowledged and confirmed the outstanding balance of ₹ 380.13 crores as on September 15, 2017 in the compromise proposal submitted. 6. That the learned lawyer appearing on behalf of the applicant/financial creditor further submitted that the consortium ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Facility Default date(s) Default amount as on 30-9-2018 Term loan-I 31-5-2015 3,31,13,768.64 Term loan-II 31-5-2015 2,95,94,429.88 Working capital-cash credit 31-5-2015 2,40,63,813.00 Total 8,67,72,011.52 9. The applicant-bank has submitted copy of the following documents in support of their claim : Sl. No. Particulars Annexure 1. Statement of facts 2. Form 1 3. Affidavit 4. Copy of authorization letter from Zonal Manager, Dena Bank, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking dated May 22, 2009 by corporate debtor to Dena Bank for securing ₹ 63,00,00,000 (rupees sixty-three crores only) Annexure-11 15. Agreement of hypothecation of goods and assets dated February 22, 2010 by borrower in favour of State Bank of Indore for securing ₹ 3,00,00,000 (rupees three crores only) Annexure-12 16. Continuity letter in favour of State Bank of Indore dated February 22, 2010 by the corporate debtor for securing ₹ 203,00,00,000 (rupees two hundred three crores only) sanctioned under SBIND Consortium arrangement Annexure-13 17. Agreement to mortgage including power of attorney in favour of State Bank of Indore dated February 22, 2010 executed between corporate debtor and State Bank of Indore for securing ₹ 203,00,00,000 (rupees two hundred three crores only) sanctioned under SBIND Consortium arrangement Annexure-14 18. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank of India, State Bank of Mysore, Union Bank of India, ICICI Bank Ltd., State Bank of Patiala, Dena Bank for securing ₹ 262,52,00,000 (rupees two hundred sixty two crores forty two lakhs only) Annexure-22 26. Letter of undertaking (Form CF-6) dated April 17, 2013 by borrower company for creating a second charge on fixed assets favour of State Bank of India-lead bank for securing ₹ 262,52,00,000 (rupees two hundred sixty two crores forty two lakhs only) Annexure-23 27. Working capital consortium agreement (Form CF-1), dated March 26, 2014 executed between corporate debtor and State Bank of India, State Bank of Mysore, Union Bank of India, Bank of Baroda, Bank of Maharashtra, State Bank of Patiala and Dena Bank for securing ₹ 350,42,00,000 (rupees three hundred fifty crores forty two lakhs only) Annexure-24 28. Joint deed of hypothecation (Form CF-2) dated March 26, 2014 executed between the corporate debtor a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m CF-6) dated March 26, 2014 for creating a second charge on land, buildings and other structures and plant and machinery and other movables (other than current assets) both present and future situated at plant of corporate debtor situated at Shajapur, Kareli, Dewas, Ratlam and Harda (Madhya Pradesh) in favour of the State Bank of India, State Bank of Mysore, Union Bank of India, Bank of Baroda, Bank of Maharashtra State Bank of Patiala, Dena Bank. Annexure-32 36. Declaration dated March 26, 2014 by Shri Satish Manglani authorized director of corporate debtor regarding deposit of title deeds for extension of equitable mortgage to cover the limits of ₹ 350,42,00,000 (rupees three hundred fifty crores forty two lakhs only) Annexure-33 37. Agreement of hypothecation (goods, book debts and other movable assets to secure multiple facilities) dated January 30, 2015 executed by the corporate debtor in favour of Dena Bank for securing ₹ 5,50,00,000 (rupees five crores and fifty lakhs only) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the State Bank of Indore dated February 22, 2010 by Shri Rajendra Manglani, Shri Satish Manglani, Shri Nandlal Manglani, Smt. Sonia Manglani for securing ₹ 203,00,00,000 (rupees two hundred three crores only) Annexure-42 46. Letter of undertaking dated February 22, 2010 by Shri Rajendra Manglani, Shri Satish Manglani, Shri Nandlal Manglani, Smt. Sonia Manglani not to take/create any further charge over their property and assets including uncalled capital in favour of State Bank of Indore for securing ₹ 203,00,00,000 (rupees two hundred three crores only) sanctioned under SBIND Consortium arrangement Annexure-43 47. Letter of undertaking dated February 22, 2010 by Shri Rajendra Manglani, Shri Satish Manglani, Shri Nandlal Manglani, Smt. Sonia Manglani in favour of State Bank of Indore for securing ₹ 203,00,00,000 (rupees two hundred three crores only) sanctioned under SBIND Consortium arrangement Annexure-44 48. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Letter of undertaking dated March 26, 2014 by Shri Satish Manglani, Shri Rajendra Manglani, Shri Dhanesh Manglani, Shri Nandlal Manglani, Mrs. Krati Manglani, Mrs. Sonia Manglani, Mrs. Archana Manglani and M/s. Pooja Commodity Futures not to take/create any further charge over their property and assets including uncalled capital in favour of State Bank of India-lead bank for securing ₹ 350,42,00,000 (rupees three hundred fifty crores forty two lakhs only) Annexure-51 55. Declaration dated March 26, 2014 by Shri Satish Manglani, Shri Rajendra Manglani, Shri Dhanesh Manglani, Shri Nandlal Manglani, Mrs. Krati Manglani, Mrs. Sonia Manglani and Mrs. Archana Manglani regarding deposit of title deeds for extension of equitable mortgage to cover the limits of ₹ 350,42,00,000 (rupees three hundred fifty crores forty two lakhs only) Annexure-52 56. Letter of guarantee dated January 30, 2015 from Shri Dhanesh Manglani and Smt. Archna Manglani for securing ₹ 5,50,00,000 (rupees five crores and fif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60 64. Certificate of charge dated May 20, 2014 for the total limit of ₹ 350.42 crores (Dena Bank share ₹ 5.80 crores) issued by the Registrar of Companies, Gwalior in favour of Consortium of State Bank of India, State Bank of Mysore, Union Bank of India, Bank of Baroda, Bank of Maharashtra, State Bank of Patiala and Dena Bank Annexure-61 65. Certificate of charge dated May 8, 2015 for the total limit of ₹ 414.17 crores (Dena Bank share ₹ 5.50 crores) issued by the RoC, Gwalior in favour of Consortium of State Bank of India, State Bank of Mysore, Union Bank of India, Bank of Baroda, Bank of Maharashtra, State Bank of Patiala and Dena Bank Annexure-62 66. Copy of notice under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) has been issued by State Bank of India (lead bank) dated December 23, 2016 demanding payment of outstanding debt of ₹ 434 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e financial debtor dated for credit facility amounting ₹ 16,00,00,000 (rupees sixteen crores only) Annexure-73 77. Sanction/renewal letter dated March 22, 2013 issued by State Bank of India to the financial debtor for credit facility amounting ₹ 318,02,00,000 (rupees three hundred eighteen crores two lakhs only) Annexure-74 78. Sanction letter issued by Union Bank of India to the financial debtor dated April 4, 2013 for credit facility amounting ₹ 50,00,00,000 (rupees fifty crores only) Annexure-75 79. Sanction advice issued by Dena Bank to the corporate debtor dated September 27, 2013 for credit facility amounting ₹ 7,42,00,000 (rupees seven crores forty-two lakhs only) Annexure-76 80. Sanction letter issued by Dena Bank to the corporate debtor dated January 8, 2015 for credit facility amounting ₹ 5,50,00,000 (rup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Annexure-86 90. Letter by Dena Bank to Madhya Pradesh Financial Corporation for ceding pari passu charge on the corporate borrowers fixed assets at Harda Units dated May 22, 2009 Annexure-87 91. NOC by Madhya Pradesh Financial Corporation to Dena bank for ceding pari passu charge on the corporate borrowers fixed assets at Harda Units dated May 28, 2009 Annexure-88 92. Intimation by corporate debtor vide letter dated April 4, 2014 to District Registrar, Dewas (Madhya Pradesh) regarding mortgage of immovable property at Dewas (Madhya Pradesh) in favour of State Bank of India, Commercial Branch, Indore (Madhya Pradesh) Annexure-89 93. Intimation by the corporate debtor vide letter dated April 4, 2014 to District Registrar, Shahjapur (Madhya Pradesh) regarding mortgage of immovable property at Shahjapur (Madhya Pradesh) in favour of State Bank of India, Commercial Bran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-99 103. Letter of authority dated February 22, 2010 given by consortium co-lenders-State Bank of Mysore, State Bank of Patiala, ICICI Bank and Dena Bank to lead bank-State Bank of India for securing ₹ 203,00,00,000 (rupees two hundred three crores only) Annexure-100 104. Pari passu letter dated February 22, 2010 by bankers for securing ₹ 203,00,00,000 (rupees two hundred three crores only) Annexure-101 105. Letter of authority given by Dena Bank to State Bank of Indore (lead bank) dated July 30, 2010 Annexure-102 106. Inland Bill Form dated September 29, 2010 by the corporate debtor to Dena Bank Annexure-103 107. Foreign Bill Form dated September 29, 2010 by the corporate debtor to Dena Bank Annexure-104 108. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Annexure-112 116. Demand draft of ₹ 25,000 in favour of Pay and Accounts Officer, Ministry of Corporate Affairs, payable at Mumbai is annexed herewith as Annexure-113 10. On perusal of the record it is found that notice was issued upon the respondent on October 29, 2018. That, since then the respondent is evading his appearance. Consequent upon which, on January 11, 2019 the matter was proceeded ex parte. That, on February 6, 2019 the learned lawyer for the respondent put his signature on the attendance sheet and filed vakalatnama on February 7, 2019 but have never prayed either for setting aside the ex parte order and/or filed any reply. Thereafter, on February 21, 2019 when the matter was listed, learned lawyer appearing on behalf of the respondent requested time to file reply without making any prayer to set aside the order passed on January 11, 2019. That, the order dated January 11, 2019 was very much in the knowledge of the corporate debtor having filed vakalatnama on February 7, 2019 has not made any request either to set aside order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the part of the corporate debtor towards financial creditor. The Code gets triggered the moment default is of rupees one lakh or more (section 4). The corporate insolvency resolution process may be triggered by the corporate debtor itself or a financial creditor or operational creditor. A financial creditor has been defined under section 5(7) as a person to whom a financial debt is owned and a financial debt is defined in section 5(8) to mean a debt which is disbursed against consideration for the time value of money. Under section 7(2) an application is to be made under sub-section (1) in such form and manner as is prescribed which takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed form in 5 Parts, which requires particulars of the applicant in Part I, particulars of the corporate debtor in Part II, particulars of the proposed interim resolution professional in Part III, particulars of the financial debt in Part IV and documents, records and evidence of default in Part V. 14. On ..... X X X X Extracts X X X X X X X X Extracts X X X X
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