TMI Blog2020 (1) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... Sanjay Bajaj and Raja Shekhar Rao Salvaji, Advs. for the Petitioner. Kailash Nath P.S.S., Adv. for the Respondent. ORDER Narender Kumar Bhola, This petition is filed by M/s. Punjab National Bank, which is the Financial Creditor stating that M/s. Lanco Vidarbha Thermal Power Limited, Corporate Debtor herein had defaulted in repaying a sum of ₹ 786,74,02,966.00 (Rupees Seven Hundred Eighty Six Crores Seventy Four Lakh Two Thousand Nine Hundered Sixty Six Only). This petition is filed under Section 7 of Insolvency and Bankruptcy Code, 2016, R/w Rule 4 of Insolvency Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, seeking admission of the Petition, initiation of Corporate Insolvency Resolution Process, granting moratorium and appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon. 2. The brief averments made in the petition are as follows: (a) It is averred that the Corporate Debtor availed various facilities from time-to-time from the Financial Creditor along with other consortium members. The facilities availed from the Financial Creditor is as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Corporate Debtor vide notice dated 17.07.2018. The Financial Creditor along with other consortium members have also filed OA for recovery of ₹ 4784,77,12,914.25 wherein the share of the Financial Creditor was ₹ 786,74,02,966.00 along with pendent- lite and further interest with cost which is pending before Debt Recovery Tribunal, New Delhi. 3. The brief averments made in Counter are as follows: (a) It is averred that a Public Interest Litigation was filed by some villagers before the Hon'ble High Court of Bombay challenging the public hearing conducted by Maharashtra Pollution Control Board (MPCB) for the Project. The Hon'ble High court of Bombay, Nagpur Bench passed a judgment on 18th October, 2011 against the above PIL, directing MPCB to conduct the public hearing again. The Court Order stated that any activity undertaken by Lanco Vidarbha Thermal Power Limited in pursuance of the impugned environment clearance shall be at its own risk and subject to the final outcome of the proceeding . (b) It is averred that delay of around 3 years on account of Force Majeure event resulted in cost and time over run. The project cost increase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Debtor failed to maintain Debt Equity ratio. There had been regular delays in bringing equity from the promoters as per envisaged financial plan, the project got delayed. (b) It is averred that the Hon'ble Supreme Court not barred any financial creditor to initiate proceedings under Section 7 of the I B Code,2016. (c) It is averred that there are certain irregularities on the part of the Corporate Debtor due to which they failed to maintain the financial discipline and consequently the account of the Corporate Debtor was declared as Non-Performing Asset. 5. We have heard the Counsel for Financial Creditor and also the Counsel for Corporate Debtor. 6. The present petition is filed under Section 7 of the Code by the Financial Creditor stating that the corporate debtor had defaulted in payment of ₹ 786,74,02,966.00 (Rupees Seven Hundred Eighty Six Crores Seventy Four Lakh Two Thousand Nine Hundered Sixty Six Only). 7. The Learned Counsel for Financial Creditor contended that Financial Creditor granted various Financial Facilities to the Corporate Debtor from time-to-time. The Counsel contended the Corporate Debtor commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed projects etc. not only adversely impacted Corporate Debtor but also resulted into an overall, depressed investment sentiment across the power sector. 12. The Financial Creditor is no way responsible for happening of certain events which causes delay in implementation of the Project. Thus, there is no valid objection raised for admission of the Petition. The Contention of the Corporate Debtor is that the company is likely to revive its business. This is not a ground on which the petition can be rejected. Further the corporate debtor admitted default. 13. The Learned Counsel for Financial Creditor filed written submissions. Wherein in Para No: 12 it is stated as follows : That no where in the petition filed by the Financial Creditor, there is any reference to the RBI circular dated 12.2.2018 nor the action has been initiated in terms thereof. It would be pertinent to mention that Corporate Debtor was not party to proceedings before Hon'ble Supreme court as no petition in its own capacity was filed by Corporate Debtor challenging the proceedings and therefore this Hon'ble Tribunal never stayed the proceedings pending before it at any stage. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 18. The Financial Creditor has suggested the name of IRP who has given his consent in Form-2 and there is no disciplinary action pending against present IRP. The account of Corporate Debtor is treated as NPA and there are grounds to admit the petition. 19. Hence, the Adjudicating Authority admits this Petition under Section 7 of IBC, 2016, declaring moratorium for the purposes referred to in Section 14 of the Code, with following directions: (a) The Bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, Tribunal, arbitration panel or other authority; Transferring , encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under Securitization and Reconstruction of Financial Assets and Enforcement of Security interest Act, 2002 (54 of 2002); the recovery of any property by an owner or lessor wher ..... X X X X Extracts X X X X X X X X Extracts X X X X
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