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2020 (2) TMI 638

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..... /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 08/03/2008 with .....

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..... l 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, Ahmedabad on 25.08.2008. CH ID No. 10117086 .....

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..... in support of its contentions has annexed the details of Financial Debt, Records and evidences of default including copies of all the sanction letters, the workings showing the amount claimed to be in default and its calculation in tabular form as on 14/06/2018 along with ROC search report and Valuation reports as detailed below: 14.1 Copies of the Sanctioned Letters (Page Nos. 44 to 82 of the paper book) 14.2 Statement of Accounts of the Corporate Debtor maintained by Bank of India along with Certificate issued under Banker's Book Evidence Act, 1891 (Page Nos. 96 to 113 of paper book) 14.3 Copy of Hypothecation cum Loan Agreement dated 19/07/2008 (Page Nos. 125 to 157 of paper book) 14.4 Copy of Credit Facility Agreement dated 19/07/2008 between the Corporate Debtor and the Financial Creditor (page Nos. 158 to 203 of paper book) 14.5 Inter-se Agreement dated 23/01/2009 between BOI, THE KARUR VYSYA BANK LIMITED and ORIENTAL BANK OF COMMERCE AS MEMBERS OF BOI CONSORTIUM (page Nos. 204 to 213 of paper book). 14.6 Copy of Letter of Authority dated 23.01.2009 given by the Karur Vysya Bank Limited (page Nos. 214 to 215 of paper book) 14.7 Copy of Letter of Authority dated 23.01.200 .....

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..... ent Insolvency proceedings, having been initiated beyond the prescribed period of limitation of 3 years from the date of the loan, or in any event having been instituted beyond a period of 3 years from 31.03.2014, i.e. the alleged date of default, is barred by the law of limitation. It attracts Section 137 of Limitation Act, 1963. 15.3 It stated that the present Application is not maintainable in law since the Applicant has suppressed various material facts before this Tribunal and has not approached this Tribunal with clean hands. 15.4 It is stated and submitted that the Applicant is fully aware of the fact that the alleged claims of the Applicant are severely disputed by the Respondent. It is submitted that the Applicant has not even quantified the penal interest which it has charged for the alleged default. 15.5 This clearly shows that the present application is just a coercive pressure tactic and the same is an abuse of the process of law. 15.6 Lastly, the present application may be dismissed with costs and the interim relief sought by the petitioner be denied by this Tribunal. 16. The Learned Lawyer of the Applicant Bank (FC) clarified their positions and put forth their argum .....

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..... ERVATIONS 23. It is observed that the Petitioner Bank has submitted the documents duly executed by the Corporate Debtors and guarantors along with a Certificate under the Banker's Book of Evidence Act, 1891, in support of their IB Petition for initiation of C.I.R.P. 23.1 The TL loans/CC/Non-fund limit were sanctioned and released by the Petitioner Bank and the same were availed by CD, Pacific Pipe Systems Pvt. Ltd. The Charges have been filed by the CD with the ROC in favour of the Petitioner Bank as per the details mentioned in ROC Search Report dated on 10.04.2018 annexed at (Page Nos. 456 to 467 of the paper book). 23.2 The CD has defaulted in making repayment of loan/credit facilities to the Petitioner Bank and the date of default is 31.03.2014. The Statement of accounts and the CIBIL Reports submitted by the applicant Bank confirm the default committed by the Corporate Debtor. 23.3 The Petitioner Bank has filed the petition within the period of limitation, as the date of mortgage of the property is 15.06.2009, SARFAESI proceeding initiated on 17.10.2014, DRT proceedings started in 2014 and the Credits have come into the loan accounts on 04/03/2015. 23.4 Revival letters hav .....

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..... ess: D-501, Ganesh Meridian, Opp. Gujarat High Court, Ahmedabad-380060, Gujarat, India as an Interim-Resolution Professional. The Interim Resolution Professional is further directed to make public announcement of moratorium in respect of Corporate Debtor soon after receipt of an authenticated copy of this order and to act further as per the order/direction issued by this Adjudicating Authority and to follow the provisions Under Sections 13 and 14 and other relevant provisions of the Insolvency and Bankruptcy Code. 26. As per the provisions of Sections 13 and 14 of the I.B. Code on the date of commencement of insolvency, this Adjudicating Authority declares moratorium with effect from today is 18/12/2019 for prohibiting all of the following, namely: - I. (a) 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. (b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein. (c) Any action to foreclose, recover or enforce any securi .....

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