TMI Blog2019 (8) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... ebruary, 2017. The Bank had issued Recall Notice demanding repayment of Part-B debt of ₹ 78,27,62,198/- within specified date, but the Corporate Debtor failed to repay the loan as demanded by the Financial Creditor . The Corporate Debtor in terms of Clause 7.1 of Event(s) of Default of Master Restructuring Agreement failed to ensure that the Gujarat State Road Development Corporation Limited has purchased equity share of ₹ 210 Crores out of ₹ 410 Crores debt converted into equity within 90 days in terms of Restructuring Agreement thereby defaulted in terms of the Agreement - the debt and default is proved and the Adjudicating Authority did not commit error in admitting Section 7 application under I B Code ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Bank is the Lenders Agent of financial institutions/ Banks including, Oriental Bank of Commerce -( Financial Creditor ). IDBI Trusteeship Services Limited is a company acting in its capacity as security trustee for the lenders, including Oriental Bank of Commerce . 4. It was submitted that the Government of Gujarat had authorised the Gujarat State Road Development Corporation to implement the work of augmenting the existing road including newly proposed Godhra bypass on the Halol-Godhra-Shamlaji State Highway No.5 for particular section. 5. The work was allotted to the Corporate Debtor and pursuant to the Concession Agreement , the Gujarat State Road Development Corporation has granted a concession by way of an ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ault and Remedies . In addition to the events of default set out in Article VII of the Common Loan Agreement , certain additional events were constituted as Event(s) of Default by Master Restructuring Agreement , which reads as follows: 7.1 In addition to the events of default set out in Article VII of the Common Loan Agreement, the following additional events shall constitute Event(s) of Default on the occurrence of which, the Security Trustee/ Lenders Agent/ Lenders shall be entitled to exercise any and all rights hereunder as contained in this Agreement, in the manner contained in Clause 8 (Consequences of Event of Default) below. (a) Payment Default The Borrower does not pay any amount(s) constituting the outstanding amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement and upon such reversal, revert back to the provisions of the Existing Facility Documents; (b) accelerate the Facility and declare the obligations of the Borrower in relation to the Facility, immediately due and payable; (c) enforce the Security Interests which have been created to secure the obligations of the Borrower in relation to the Facility in the manner stipulated under the Facility Documents; (d) stipulate any further terms and conditions as the Lenders deem fit with respect to Facility Documents; (e) upon the occurrence of an Enforcement Event, the Majority Lenders (acting through any of the Lenders or otherwise) shall have a right to appoint a nominee/ whole time director(s) on the Board of Directors of the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther stated that since the Corporate Debtor had taken monies from various Scheduled Banks including this Applicant for laying road, as this Corporate Debtor failed to service the loan, GSRDCL was asked to take share of ₹ 210 Crores equity by 31.12.2017 out of proposed conversion of debt of ₹ 410Crores into equity. On having this Corporate Debtor given an impression to the Banks stating that GSRDCL would take share of ₹ 210 cores of equity out of proposed equity of ₹ 410 crores, the lenders on 14.02.2017 agreed in the Master Restructuring Agreement for clause 7.1 (Event of Default) and 8 (Consequences of Event of Default) mentioning that in the event concessions sought in terms of the letter dated 08.11.2016, the Len ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor that it failed to comply with the concession mentioned in the Master Restructuring Agreement dated 14th February, 2017. The Bank had issued Recall Notice demanding repayment of Part-B debt of ₹ 78,27,62,198/- within specified date, but the Corporate Debtor failed to repay the loan as demanded by the Financial Creditor . 14. From the facts as referred and noticed above, we find that the Corporate Debtor in terms of Clause 7.1 of Event(s) of Default of Master Restructuring Agreement failed to ensure that the Gujarat State Road Development Corporation Limited has purchased equity share of ₹ 210 Crores out of ₹ 410 Crores debt converted into equity within 90 days in terms of Restructuring Agreement there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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