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TMI Blog2019 (10) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... es, severally authorized to sign and execute for and on behalf of the Company all the documents and file proceedings under the provisions of the Code and his name finds mentioned at Sl. No. 47 in the Resolution dated 7th March, 2018. 2. It is submitted by the Financial Creditor that at the request of the Corporate Debtor and its Directors and with the consent and no objection of the United Bank of India, Bank of Baroda took over the credit facilities availed by the Corporate Debtor from the United Bank of India and thereafter the Bank of Baroda issued a letter of sanction dated 13th August, 2008 for an aggregate overall limit of Rs. 12,04,35,000/- (Rupees Twelve Crore Four Lakh Thirty Five Thousand Only) which consisted of Term Loan of Rs. 5,67,80,000/-(Rupees Five Crore Sixty Seven Lakh Eighty Thousand Only), Cash credit of Rs. 6,25,00,000/- (Rupees Six Crore Twenty Five Lakh Only) and Bank Guarantee of Rs. 11,55,000/- (Rupees Eleven Lakh Fifty Five Thousand Only). To secure the loan, the bank got several documents executed from the Corporate Debtor which are mentioned below:- i) Demand Promissory Note for Rs. 6,25,00,000/-, ii) Letter of Continuing Security; iii) Demand Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehalf of EARC Trust SC 31 has acquired all rights, title and interest in relation to Bank of Baroda and became a Financial Creditor and stepped into the shoes of Bank of Baroda and is thus entitled to initiate necessary proceedings against the Corporate Debtor in connection with the outstanding dues. The Financial Creditor has thus filed this petition for the purpose and has placed on record all the evidences and documents relating to disbursement of debt by Bank of Baroda, the erstwhile Financial Creditor along with the Assignment Agreement and proof of default and declaration of the account as an NPA. In its reply affidavit the Corporate Debtor has filed an affidavit of Sri Arup Mukherjee, General Manager of the Corporate Debtor alleging that the loan assigned by the Bank of Baroda to the applicant is not due and payable by the Corporate Debtor and there is no default on the part of the Corporate Debtor, the debt being barred by limitation. It is further submitted in the application that the applicant has grossly suppressed and misrepresented the facts before the Tribunal and it is indulging in forum shopping and multiple proceedings solely to harass and coerce the Corporate Debt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that mere pendency of proceedings before the DRT, which is yet to be adjudicated upon, is not a par for proceedings under this Court. 9. It is further denied that the proceedings are barred by law of limitation. The Financial Creditor has submitted that the Balance Sheet of the Corporate Debtor as on 31st March, 2017 has disclosed and admitted a demand of Rs. 25 crores approximately to Bank of Baroda and thus in the light of admission of the Corporate Debtor as regards outstanding in its Balance Sheet in 2017 this submission of the Corporate Debtor that the application under Section 7 is barred by law of limitation is absolutely contrary to their admitted facts, and no facts have been suppressed or misrepresented by the Financial Creditor. It is denied that there is no valid assignment in the eyes of the law or that the debts have not been transferred by the Bank of Baroda to the present applicant/Financial Creditor. It is further denied that the Corporate Debtor had strictly complied by the terms and conditions stipulated in the sanction letter dated 13th August, 2008. If the Corporate Debtor had abided by the terms of the sanction letter, then the credit facilities would not h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,54,000/-and executed several documents on 6th May, 2009. However, on their failure to adhere to the terms and conditions, the account of the Corporate Debtor was classified as NPA by Bank of Baroda on 31st March, 2010 and they were called upon to pay the sum together with further interest within 60 days from the date of notice and thereafter proceedings under Section 19 of the recovery of debts due to Banks and Financial Institutions, 1993 for recovery of the outstanding dues from the Corporate Debtor was filed before DRT and numbered as OA 265 of 2013. This loan was however, assigned by way of Assignment Agreement dated 26th March, 2014 by Bank of Baroda to the present Financial Creditor which, stepped into the shoes of Bank of Baroda and is thus entitled to initiate proceedings as against the Financial Creditor before NCLT in the present proceedings. 14. In the case of Babulal Vardhaji Gurjar (supra), it is specifically opined that initiation or pendency of a petition under Section 19 before DRT will not in any way affect the initiation of Corporate Insolvency Resolution Process. Rather, under Section 14 of the l&B Code, all such proceedings cannot proceed during the period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have no other option but to admit the application and pass the following orders:- ORDER (i) The application filed by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency Resolution Process against the Corporate Debtor, M/s. Gena Pharmaceuticals Limited is hereby admitted. (ii) We hereby declare a moratorium, and order public announcement in accordance with Sections 13 and 15 of the IBC, 2016. (iii) The moratorium is declared for the purposes referred to in Section 14 of the Insolvency and Bankruptcy Code, 2016. The Interim Resolution Professional, being appointed vide this order, shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process made, and call for the submission of claims under Section 15. The public announcement referred to in clause (b) of sub-section (1) of Section 15 of the Insolvency & Bankruptcy Code, 2016 shall be made immediately. (iv) Moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 prohibits the following: a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution ..... X X X X Extracts X X X X X X X X Extracts X X X X
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