TMI Blog2019 (10) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... d to initiation of corporate insolvency resolution process because under Section 7 of the Code pendency of such proceedings is no bar to the admission of the petition and initiation of corporate insolvency resolution process. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the Corporate Debtor committed default in paying the financial debt to the Applicant - On perusal of record, it is held that there is existence of default and that the application under Section 7(2) of the Code is also complete in all respect. The petitioner/financial creditor having fulfilled all the requirements of Section 7 of the Code, the instant petition deserves to be admitted - petition admitted - moratorium declared. - CP(IB) 199/7/NCLT/AHM/2018 - - - Dated:- 24-7-2019 - MS. MANORAMA KUMARI, MEMBER JUDICIAL AND HARIHAR PRAKASH CHATURVEDI, MEMBER JUDICIAL For The Creditor/Petitioner : A.S. Panesar, Adv. and Navin Pahwa, Sr. Adv. For The Respondent : M/s. Jaimin R. Dave, Priyan S. Dave, Shivam D. Parikh and Rashesh Sanjanwala ORDER 1. JM Financial Asset Reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,06,67,193 Current outstanding break-up: - Sl. No. Facility Principal outstanding Dues as on 25.03.2014 Interest from 25.03.2014 to 15.03.2018 Total Dues 1 Term loan 8,25,00,000 3,19,62,092 2,22,11,770 5,41,73,862 2 Cash credit 2,75,00,000 9,89,61,746 6,75,31,585 16,64,93,331 Total 11,00,00,000 13,09,23,838 8,97,43,355 22,06,67,193 Particulars Amount (in Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akhs dated 01.09.2005 33-34 11 Agreement of term loan for ₹ 200 lakhs dated 01.09.2005 35-39 12 Deed of hypothecation of plant and machinery for ₹ 22 lakhs dated 01.09.2005 40-47 13 Demand promissory note for ₹ 100 lakhs dated 03.11.2005 48-49 14 Letter of waiver for ₹ 100 lakhs dated 03.11.2005 50 15 Letter of continuity for ₹ 100 lakhs dated 03.11.2005 52-71 16 Deed of hypothecation for ₹ 100 lakhs dated 03.11.2005 52-71 17 Agreement of term loan for ₹ 200 lakhs dated 03.11.2005 72-74 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deed of hypothecation of plant machinery for ₹ 130 lakhs dated 8.11.2007 135-150 33 Supplemental deed of hypothecation of goods for ad hoc cash credit limit of ₹ 50 lakhs dated 13.01.2009 151-154 34 Demand promissory note for ₹ 270 lakhs dated 27.02.2009 155 35 Letter of waiver for ₹ 270 lakhs dated 27.02.2009 156 36 Letter of continuity for ₹ 270 lakhs dated 27.02.2009 157 37 Second supplemental deed of hypothecation of goods, stocks book debts for ₹ 270 lakhs dated 27.02.2009 159-162 38 Agreement of term loan for ₹ 280 lakhs dated 27.02.2009 163-169 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Agreement of term loan of ₹ 8,96,52,000 dated 30.06.2011 215-216 53 Letter of continuing guarantee dated 1.9.2005 for aggregate limits of ₹ 300 lakhs signed by Mr. Jagdishbhai Patel, Mrs. Nandiniben Patel and Mr. Karan Patel 222-228 54 Letter of continuing guarantee dated 3.1.2005 for aggregate limits of ₹ 300 lakhs signed by Mr. Jagdishbhai Patel, Mrs. Nandiniben Patel and Mr. Karan Patel 229-231 55 Letter of continuing guarantee dated 19.11.2005 for aggregate limits of ₹ 300 lakhs signed by Mr. Jagdishbhai Patel, Mrs. Nandiniben Patel and Mr. Karan Patel 232-239 56 Letter of continuing guarantee dated 12.07.2006 for aggregate limits of ₹ 582.32 lakhs signed by Mr. Jagdishbhai Patel, Mrs. Nandiniben Patel and Mr. Karan Patel 240-245 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reto are assigned to financial creditor acting in its capacity as trustee of JMFARC- UCO March, 2014-Trust 345-417 67 Copies of entries in a Bankers Book in accordance with the Bankers Book Evidence Act, 1891 418-439 68 Balance confirmation letter dated 27.02.2009 440 69 Letter for compromise settlement dated 28.03.2016 by corporate debtor 441 70 Rejection of aforesaid settlement dated 13.04.2016 442 71 Letter for settlement dated 10.03.2018 by corporate debtor 443 72 Rejection of aforesaid settlement dated 14.03.2018 444 73 Notice issued u/s 13(2) of the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany. 8. The respondent has further contended that vide letter dated 21.05.2010 respondent called upon UCO Bank to credit their CC account with US $ 31,204, ₹ 2,26,396/- towards the lost cheques and excess amount that debited from the respondent company s account by unilaterally increasing the interest rate. That, similar requests were made vide letters dated 23.06.2010 and 12.07.2010, however, UCO Bank did not bother to take any action. That, pending the adjudication of the securitisation application, UCO Bank has illegally assigned the debts of the respondent company to the petitioner herein vide assignment deed dated 25.03.2014. That, the respondent company is one of the largest syringe manufacturers and employs more than 100 direct and indirect employees. Findings 9. Heard the submissions made by the lawyers appearing for both the parties and perused the relevant provisions and the records. 10. The first objection raised by the respondent is that the application is time barred. It is a matter of record that the UCO Bank had granted several facilities including Cash Credit Facility to the Corporate Debtor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any impediment with regard to initiation of corporate insolvency resolution process because under Section 7 of the Code pendency of such proceedings is no bar to the admission of the petition and initiation of corporate insolvency resolution process. 12. In the instant application, from the material placed on record by the Applicant, this Authority is satisfied that the Corporate Debtor committed default in paying the financial debt to the Applicant. 13. To decide the issue, it is desirable to refer to the Judgment delivered by the Hon ble Supreme Court, in the matter between Innoventive Industries Ltd. v. ICICI Bank Anr., In Civil Appeal Nos. 8337-8338 of 2017, in Para No. 30 has clearly held as follows; 30. On the other hand, as we have seen, in the case of a corporate debtor who commits a default of a financial debt, the adjudicating authority has merely to see the records of the information utility or other evidence produced by the financial creditor to satisfy itself that a default has occurred. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Enforcement of Security Interest Act, 2002 (54 of 2002); (iv) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 18. It is further directed that the supply of goods and essential services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. The provisions of sub-section (1) shall, however, not apply to such transaction as may be notified by the Central Government in consultation with any financial sector regulator. 19. The order of moratorium shall have effect from the date of receipt of authenticated copy of this order till the completion of the 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. 20. This Petition stands disposed of accordingly with no order as to costs. IA/(s) if any, pending stand infructuous and disposed of. 21. Communicate a copy of this order to the Applicant, Financial Credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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