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2019 (5) TMI 1047

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..... ncial Creditor, it has to be proved by them that there is an outstanding debt and default has occurred in payment towards the loan. This has been clearly established by the various agreements among the Financial Creditor, Corporate Debtor and the Guarantors to the Corporate Debtor. The documents enclosed with the petition clearly proved that the outstanding loan is due to the Financial Creditor and there has been a default in servicing of the debt by the Corporate Debtor. This Tribunal hereby admit application and order initiation of Corporate Insolvency Resolution Process against the Corporate Debtor - moratorium declared. - CP(IB) NO. 1055/2018 - Dated:- 27-3-2019 - MR B.S.V. PRAKAKASH KUMAR, MEMBER (JUDICIAL) AND MR S. VIJAYARAGHAVAN, ME .....

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..... acquired all rights, title and interest in relation to UCO Bank ( Assignor Bank ) facilities (including without limitation, the security interest available to UCO Bank in respect of the UCO Bank Facilities, pursuant to which the Trustee became a Financial Creditor of the Corporate Debtor in respect of, inter alia, UCO Bank Facilities. Thus, EARC have acquired the rights, title and interest in the above financial assistances from Assignor Bank for legal and valid consideration vide assignment agreement mentioned above. 4. On perusal of the record, it appears that the Corporate Debtor availed credit facilities Term Loan-I ₹ 69,00,000 on 23.08.2008, Term Loan-II ₹ 1,46,00,000 on 25.08.2008, Term Loan-III ₹ 2,15,00,000 on 26.0 .....

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..... y certificate in OA No.1115/2012 to the UCO Bank, Asset Management Branch, Bangalore-560009. The Authorized Officer of EARC has taken symbolic possession of mortgaged property on 18.09.2017 in exercise of powers conferred on him under Section 13(4) of the SARFAESI Act read with rule 8 of the Security Interest (Enforcement) Rules, 2002. 7. It is seen that the Financial Creditor has given the particulars of the amount of loan (Term Loans under UCO Rent Scheme) extended to the Corporate Debtor and an amount of ₹ 7,06,55,986 (Principal ₹ 4,75,69,884 & Interest ₹ 2,30,86,102) is claimed to be in default from 31.03.2011 (page 64 of the typed set). The Financial Creditor has enclosed the copy of sanction letters issued by the .....

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..... estructuring period is still persistent till 31.12.2019. 9. In the rejoinder dated 08.03.2019, the Financial Creditor stated that certain payments made by the Corporate Debtor between 01.01.2015 and 13.04.2017 and even thereafter have been duly given credit to. Since the Corporate Debtor defaulted repeatedly in fulfilling the conditions, which were the substratum of the Letter of Restructuring as set out in para 14, the Financial Creditor exercised its right to cancel the Letter of Restructuring dated 30.12.2014 and this was done as per the letter dated 13.04.2017. Thus, the restructuring fell through and the original default revived and stood crystallized and the fact remains that the original default dated 31.03.2011 still stands. It is f .....

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..... Act, to protect its interest. 11. On 13.04.2017, the Financial Creditor cancelled the above restructuring arrangement since the Corporate Debtor has continuously defaulted in repayment obligations beyond the allowed cure period. On this ground, the Corporate Debtor cannot claim that restructuring period is still persistent. 12. However, for the purpose of IBC 2016, in the case of Financial Creditor, it has to be proved by them that there is an outstanding debt and default has occurred in payment towards the loan. This has been clearly established by the various agreements among the Financial Creditor, Corporate Debtor and the Guarantors to the Corporate Debtor. The documents enclosed with the petition clearly proved that the outstanding loa .....

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..... operty including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); (d) The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 16. The supply of essential goods or services of the Corporate Debtor shall not be terminated or suspended or interrupted during moratorium period. The provisions of Sub-section (1) of Section 14 shall not apply to such transactions, as notified by the Central Government. 17. The IRP shall comply with the provisions of Sections 13 (2), 15,17 & 18 of the Code. The directors, Promoters or any other person associated with the management of Corporate Debtor .....

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