TMI Blog2020 (2) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... O. 305/7/NCLT/AHM/2018 - - - Dated:- 18-12-2019 - Harihar Prakash Chaturvedi, Judicial Member And Prasanta Kumar Mohanty, Technical Member Ketan M. Parikh, Adv. for the Applicant. Shashwata Sukla, Adv. and Sharvil P. Majmudar for the Respondent. ORDER Prasanta Kumar Mohanty, The present IB. Petition is filed by the Financial Creditor Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as a Code ), seeking initiation of Corporate Insolvency Resolution Process ( CIRP in Short) against the Corporate Debtor Company namely, Pacific Pipe Systems Private Limited for the default committed by the Corporate Debtor in making repayment of the Term Loans, FITL CC facility availed from the Bank. The Applicant (FC), Bank of India (BOI) is a Bank, incorporated under the provisions of the Banking Companies (Acquisition Transfer of Undertakings) Act, 1970. The application has been filed by the duly authorised officer, Shri Dineshkumar Vashrambhai Chavda, Bank of India, Zonal Office, Bhadra, Ahmedabad. 2. The Respondent Corporate Debtor (CD) Company, namely, Pacific Pipe Systems Private Limited was incorporated on 08/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The total aggregate limit of ₹ 61.85 Crores (FB/NFB) was sanctioned by the Applicant Bank vide sanction letter dated 21/06/2008 with certain terms and conditions including hypothecation of plant and machineries, stocks and book debt, mortgage of immovable properties. Details of the charges created by the Corporate Debtor in favour of the Applicant as given below: I Fund Based Limits: (a) Cash Credit (Stock Book Debt) for ₹ 7.35 Crores. (b) Term Loan (One time LC for import/purchase of capital goods) for ₹ 32.50 Crores. Total Fund Based Limit ₹ 39.85 Crores. II Non-Fund Based Limits: (a) Inland Guarantee ₹ 8.50 Crores. (b) One time BG limit for Importing machinery by paying concessional duty ₹ 5.50 Crores. (c) Letter of Credit I/F, DP/DA 90 days (for Inland LC) 120 days (for foreign LC) ₹ 8.00 Crores. 7. Subsequently, the Financial Creditor renewed the limit on 19/01/2012. Thereafter, the Financial Creditor restructured the Loan on 26/10/2013 as requested by the Corporate Debtor. 8. Corporate Debtor registered charge of their liability in favour of the Bank of India for ₹ 61.85 Crores with ROC, Ahme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,623.78/- 2,28,21,633.81/- 13,07,52,488.37/- 2. FITL 1,17,64,507.00/- 1,50,57,206.24/- NIL 2,68,21,713.24/- 3. Term Loan 7,37,00,000.00/- 5,14,06,137.77/- 7,26,905.00/- 12,43,79,232.77/- 4. Term Loan 1,30,00,000.00/- 90,71,248.06/- 1,31,899.00/- 2,19,39,349.06/- 5. Term Loan 11,24,00,352.00/- 7,84,31,651.33/- 11,40,422.00/- 18,96,91,581.33/- Total (+) (+) (-) 49,35,84,364.77/- 25,46,18,357.40/- 26,37,86,867.18/- 2,48,20,859.81/- 14. The Petitioner Bank, in support of its contentions has annexed the details of Fina ncial Debt, Records and evidences o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by between Corporate Debtor with BOI Consortium. (page Nos. 364 to 370 of paper book) 14.17 Copy of Supplemental Deed of Hypothecation dated 27/12/2013 between Corporate Debtor and Bank of India (page Nos. 384 to 402 of paper book) 14.18 Copy of Credit Facility Agreement dated 27/12/2013 between the Corporate Debtor and the Financial Creditor. (page Nos. 403 to 440 of paper book) 14.19 Copy of Revival Letter dated 09/01/2014. (page Nos. 441 to 444) 14.20 Copy of ROC Search Report dated 10/04/2018. (page Nos. 456 to 467 of paper book). 14.21 Copy of Valuation Reports (page Nos. 468 to 492 of paper book) 14.22 CIBIL Report (page Nos. 505 to 620 of paper book) 15. In response to the present IB. Petition filed by the Petitioner Bank, the Respondent has filed its objections on 29.08.2018. 15.1 It is submitted that the application is not in the form Prescribed under the Insolvency and Bankruptcy Code, 2016. The Statement of Account is not attached in accordance with the Bankers Book Evidence Act, 1891 and hence, the proceedings filed by the applicant before the Tribunal are not maintainable. 15.2 It is submitted that the present Insolvency proceedings, ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the settlement of the account for ₹ 15.50 Crores to ₹ 16.25 Crores. Hence, it is also a clear acknowledgement the party of the Corporate Debtor that this amount is due and defaulted. Corporate Debtor has also offered another OTS for ₹ 22.77 Crores which was rejected by the Applicant Bank on 23/01/2019. 20. The matter was taken up and heard both sides before this Bench on 16.07.2018, 24.08.2018, 10.10.2018, 12.11.2018, 03.12.2018, 04.01.2019, 31.01.2019, 14.02.2019, 27.03.2019, 29.05.2019, 17.07.2019, 22.08.2019 and 20.09.2019. The counsels of the Petitioner and the Respondent were present and put forth their submissions before the Bench. 21. It is a settled legal position that the pendency of SARFAESI proceeding or other dispute does not prevent a Financial Creditor to trigger the C.I.R.P. because the nature of remedy being sought for under the provisions of the IB Code is Remedy in Rem in respect of the CD. 22. The Petitioner Bank has suggested the name of Insolvency Professional to be appointed, if this petition is allowed and the proposed I.R.P. has also given his affirmation/consent in writing, which is annexed with the present IB. Petition. OBSE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lted and proposed a name of Resolution Professional to act as an Interim Resolution Professional (IRP) ORDER 24. Considering the material papers filed by the Petitioner Bank and the facts mentioned in the Para Nos. 23, 23.1, 23.2, 23.4, 23.5 23.6 this Adjudicating Authority is satisfied that,- (a) The Corporate Debtor availed the loan/credit facilities from the Financial Creditor Bank; (b) Existence of debt is above Rs. One Lakh; (c) Debt is due; (d) Default has occurred on 31/03/2014; (e) Petition had been filed within the limitation period; (f) Copy of the Application filed before the Tribunal has been sent to the Corporate Debtor and the application filed by the Petitioner Bank Under Section 7 of IBC is found to be complete for the purpose of initiation of Corporate Insolvency Resolution Process against the Corporate Debtor. Hence, the present IB Petition is admitted with the following Directions/observations. The date of admission of this petition is 18/12/2019. 25. This Adjudicating Authority hereby appoints, as proposed, Mr. Chandra Prakash Jain, having Insolvency Professional Registration No. IBBI/IPA-001/IP- P00147/2017-18/10311, Email ID: Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advised to extend co-operation to Interim Resolution Professional as required Under Section 19 of IB Code. 28. It is also observed that the Petitioner Bank has claimed total dues of ₹ 49,35,84,364.77/- which includes undebited interest. Penal interest and Other debts of ₹ 26,37,86,867.18/- One of the prime objectives of the Insolvency and Bankruptcy Code, 2016 is to find out an Insolvency Resolution Plan in time for the Corporate Debtor and in order to have a Resolution Plan Viable, feasible and implementation successful, in the era of Minimum Cost of funds based Lending Rate ( MCLR in short) and Competitive market condition, the Committee of Creditor(s) (CoC) may explore, while finalizing the Resolution Plan for the Corporate Debtor, the possibility of loading maximum interest at the Applicant Bank's Base Rate (BR) +1 % from the date of default to the date of implementation of MCLR and further from the date of implementation of MCLR till the date of approval of the Resolution Plan at the rate of Petitioner Bank's One Year MCLR or One Year MCLR + 1% without any penal/overdue interest. 29. The Registry is hereby directed to communicate the authenticate cop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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