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2019 (11) TMI 444

..... es from the Financial Creditor and had executed the Loan Agreement and all the Security documents in favour of the Financial Creditor and committed a default in repayment and ultimately was declared a Non-Performing Assets, we are fully satisfied and have no option but to admit the application and initiate Corporate Insolvency Resolution Process under section 7 of the Insolvency & Bankruptcy Code read with Rule 4 against the Corporate Debtor. Application admitted - moratorium declared. - CP (IB) No. 207/KB/2019 - 23-7-2019 - SHRI JINAN K.R., MEMBER (JUDICIAL) AND SHRI HARISH CHANDER SURI, MEMBER (TECHNICAL) For The Financial Creditor : Mr Pralay Kar ORDER Per Harish Chander Suri, Member (T) 1. This Application under section 7 of the Insolvency & Bankruptcy Code, 2016 read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 has been filed by United Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office in Kolkata (hereinafter referred to as the Financial Creditor), through Shri Skand Kumar Pandey, Assistant General Manager of Salt Lake B .....

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..... d but not the land itself to the bank, because the land was on leasehold basis and could not have been mortgaged by the Lessee. 5. Later, on 9th August, 2013 the Corporate Debtor held a meeting of its Board of Directors and passed a Resolution to the effect that the company shall mortgage its building, machinery and also stocks as required by financing bank to avail Term Loan and Working Capital Loans. Copy of said Board Resolution is annexed marked as Annexure - G to the application. 6. The Financial Creditor thereafter sanctioned credit facilities to the tune of ₹ 8,90,00,000/- (Rupees Eight Crore Ninety Lakh Only). Vide sanction letter dated 24.09.2013, the fresh Term Loan of ₹ 3,80,00,000/- (Rupees Three Crore Eighty Lakh Only) repayable in 22 equal quarterly instalments with interest @ 13.25% per annum commencing from December, 2014 and ending in March, 2020. 7. The Corporate Debtor secured the Term Loan by way of exclusive hypothecation charge on Company s all the movable and immovable assets both fixed and current, relating to the project present and future and exclusive equitable mortgage charge on entire factory building of the unit measuring 5850 sq. mtrs alon .....

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..... y documents including the following:- a) Demand Promissory Note for ₹ 5,36,00,000/- b) Letter of Continuity c) Letter of Lien d) Agreement for Term Loan e) Agreement for Term Loan and Hypothecation f) Agreement for Hypothecation of Goods, Book Debts, Plant & Machinery. And thereafter executed 2 Letters of Extension of Equitable Mortgage on 29th December, 2016. 11. It is submitted that the Corporate Debtor did not maintain the loan account in terms of Sanction Letter and in spite of repeated requests, it failed to honour those terms and to deposit substantial amount in the credit accounts to regularize the same pursuant to which the Financial Creditor, following the RBI Circulars and Guidelines classified the loans of the Corporate Debtor as Non-Performing Assets with effect from 30th September, 2017. 12. The matter was taken up under SARFAESI Act, 2002 by issuing statutory Demand Notice dated 08.11.2018 under section 13(2) of SARFAESI Act, 2002 to the Corporate Debtor and Directors/Guarantors and demanded repayment of total outstanding amount of ₹ 4,92,28,551.51 (Rupees Four Crore Ninety Two Lakh Twenty Eight Thousand Five Hundred Fifty One and Paise Fifty Only) alo .....

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..... rther submitted that he does not have any pecuniary or personal relationship with the Corporate Debtor, as stipulated under Schedule-1 of The Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 and that he does not have any pecuniary or personal relationship with any of the stakeholders entitled to distribution under Section 53 or 178 of the Code. 17. We have heard Learned Counsel the Financial Creditor at length and have been taken through all the documents filed by the Financial Creditor mentioned above which sufficiently secured the loan of the Financial Creditor. Since the Corporate Debtor had availed the loan facilities from the Financial Creditor and had executed the Loan Agreement and all the Security documents in favour of the Financial Creditor and committed a default in repayment and ultimately was declared a Non-Performing Assets, we are fully satisfied and have no option but to admit the application and initiate Corporate Insolvency Resolution Process under section 7 of the Insolvency & Bankruptcy Code read with Rule 4 against the Corporate Debtor. We, therefore pass the following order:- ORDER i) The application filed by the Financ .....

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..... kata - 700013, an Insolvency Professional registered with the Indian Institute of Insolvency Professionals of ICAI, having Registration No. IBBI/IPA- 001/IP-P00325/2017-2018/10595, E-mail ID: sanjeevjhunjhunwala@gmail.com Mobile No. 9831248361, is hereby appointed as Interim Resolution Professional by this Tribunal for ascertaining the particulars of creditors and convening a meeting of Committee of Creditors for evolving a resolution plan. ix) The Interim Resolution Professional should convene a meeting of the Committee of Creditors and submit the resolution passed by the Committee of Creditors and shall identify the prospective Resolution Applicant within 105 days from the insolvency commencement date. x) The Registry is hereby directed under section 7(4) of the Insolvency and Bankruptcy Code; 2016 to communicate the order free of charge to the Financial Creditor, the Corporate Debtor and to the I.R.P. by Speed Post as well as through E-mail. xi) List the matter on 26th August, 2019 for filing of the progress report. xii) Certified copy of the order may be issued to all the concerned parties, if applied for, upon compliance with all requisite formalities. - Insolvency & Bankruptc .....

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