TMI Blog2019 (7) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... and Bankruptcy Code, 2016 (hereinafter referred as I B Code) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 [ Adjudication Rules for short] to initiate Corporate Insolvency Resolution Process against M/s. Keneria Granito Ltd. [hereinafter called as Respondent/Corporate Debtor ]. 2. The Applicant, Bank of India, a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Star House, C-5, G-Block, Bandra Kurla Complex, Bandra (East) Mumbai-400 051 and one of its branches at Surat Mid-Corporate Branch, Bank of India Building, 1st Floor, Nr. BSNL Office, Ghod-Dod Road, Surat-395 001. 3. The Respondent, M/s. Kaneria Granito Ltd., is a company registered under the Companies Act, 1956, date of incorporation 21st January 2000, vide CIN: U14000GJ2000PLC037275, having its Registered Office at 606/A-2, Tirupati Plaza, Athwa Gate, Near Collector Office, Surat-395 001. 4. The Authorized Share Capital of the respondent-corporate debtor company is ₹ 37,50,00,000/- and the Paid-up Share Capital of the Respondent C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanction letter dated 26.02.2013, as follows; 1) Term Loan-I of ₹ 3,60,00,000/- [Depletion from ₹ 5,55,00,000/- to ₹ 3,60,00,000/-] 2) Term Loan-II of ₹ 1,46,00,000/- [Depletion from ₹ 2,01,00,000/- to ₹ 1,46,00,000/-] 3) Term Loan-Ill of ₹ 9,86,00,000/- [Depletion from ₹ 12,55,00,000/- to ₹ 9,86,00,000/- review)] 4) Term Loan-IV of ₹ 1,12,00,000/- [Depletion from ₹ 1,49,00,000/- to ₹ 1,12,00,000/- [review)] 5) Term Loan-V of ₹ 19,12,00,000/- [Depletion from ₹ 22,40,00,000/- to ₹ 19,12,00,000/- review)] 6) Cash Credit Hypo. Stock and Book-Debts) ₹ 9,70,00,000/- [Depletion from ₹ 15,20,00,000/- to ₹ 9,70,00,000/-) review and ₹ 21.25 crore for F.Y. 2014)]. 7) Working Capital Term Loan of ₹ 17.91 crore fresh) 8) Funded Interest Term Loan-I of ₹ 1.81 crore fresh) 9) Funded Interest Term Loan-II of ₹ 11.27 crore fresh) 10) Non-Fund Based Limits of ₹ 4.00 crore depletion from ₹ 6.00 crore) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bldg. Ghoddod Road Surat-395 001 State Bank of India Industrial Finance Branch Marble Arch Race Course Circle Vadodara-390 007 Allahabad Bank Rajmahal Road Branch Giridhar Chamber Rajmahal Road Vadodara-390 001 Dear Sir, We refer to the various documents executed by us more particularly:- Sr. No. Particulars Date of document Amount (Rs. Cr) 01 Consortium Agreement 22-03-2006 27.37 02 Joint Deed of Hypothecation 22-03-2006 27.37 03 Credit Facility Agreement 22-03-2006 27.37 04 Memorandum of Entry (Joint Equitable Mortgage Charge) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12-11-2010 T/L 110.06 W/C 49.08 18 Credit Facility Agreement 12-11-2010 159.14 19 Supplemental memorandum of entry (joint equitable mortgage charge) 12-11-2010 159.14 20 Master Restructuring Agreement 28-03-2013 21 Trust and Retention Account Agreement 28-03-2013 22 Inter Se Agreement 28-03-2013 23 Loan Facility Agreement 28-03-2013 213.69 24 Working Capital Facility Agreement 28-03-2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed therein. Shri ANIL D KANERIA, Director for the time being of KANERIA GRANITO LIMITED For Kaneria Granito Limited sd/- Authorized Signatory THE COMMON SEAL OF KANERIA sd/- GRANITO LIMITED was hereunto affixed pursuant to a resolution of the Board of Directors of the said company passed on this behalf on the 28th day of November 2015 In the presence of sd/- Shri Manoj D Kaneria Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -corporate debtor company had not paid the amount due and payable to the applicant. However, the applicant has filed this application requesting the Adjudicating Authority to- a) to admit the application under Section 7(5) (a) of the Insolvency and Bankruptcy Code, 2016. b) to declare a moratorium for the purposes referred to in Section 14 of the Insolvency and Bankruptcy Code, 2016. c) to cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for the submission of claims under Section 15 of the Insolvency and Bankruptcy Code, 2016. 14. Notice was issued to the respondent-corporate debtor company as per the practise and procedure of this Tribunal. The respondent-corporate debtor appeared through its advocate and submitted that they have no objection towards the admission of the present petition so filed under Section 7 of the I B Code, if found complete in all respects. 15. It is also a matter of record that during the pendency of the present IB Petition, this Bench is in receipt of letter dated 29.11.2018 (received on 14th December, 2018) from the Asst. Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation as may be specified by the Board. (4) The Adjudicating Authority shall, within fourteen days of the receipt of the application under subsection (2), ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor under sub-section (3). (5) Where the Adjudicating Authority is satisfied that- (a) a default has occurred and the application under sub-section (2) is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application; or (b) default has not occurred or the application under sub-section (2) is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application: Provided that the Adjudicating Authority shall, before rejecting the application under clause (b) of sub-section (5), give a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice from the Adjudicating Authority. (6) The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wide terms as meaning non-payment of a debt once it becomes due and payable, which includes non-payment of even part thereof or an instalment amount. For the meaning of debt , we have to go to Section 3(11), which in turn tells us that a debt means a liability of obligation in respect of a claim and for the meaning of claim , we have to go back to Section 3(6) which defines claim to mean a right to payment even if it is disputed. 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 distinction is made by the Code between debts owed to financial creditors and operational creditors. A financial creditor has been defined under Section 5(7) as a person to whom a financial debt is owed 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. As opposed to this, an operational creditor means a person to whom an operational debt is owed and an operational debt under Section 5 (21) means a claim in respect of provision of goods or servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y perusing the record of the case, we find that the IB Petition is complete and its filing is found to be in order. 23. Having heard the submission of Mr. Karan Sanghani, Advocate for the Financial Creditor as well as Mr.Monaal Davawala, Advocate, for the Respondent-Corporate Debtor, the present petition deserves admission. Hence, it is admitted under Section 7 of the I B Code, with consequential directions given as under; i) This Adjudicating Authority hereby appoint CA Vineeta Maheshwari, as Interim Resolution Professional having address at M-19-20-21, Metro Tower, Nr.Kinnaiy Cinema, Ring Road, Surat-395 002 and having Registration No. IBBI/IPA-001/IP-P00185/2017-18/10364 under Section 13 1) c) of the Code. ii) That the order of Moratorium under Section 14 of the Code shall have effect from 26.04.2019 till the completion of Corporate Insolvency Resolution Process or until this Bench approves the Resolution Plan under Sub-section 1) of Section 31 or passes an order for Liquidation of Corporate Debtor under Section 33 as, the case may be. iii) That the Bench hereby prohibits the institution of suits or continuation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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