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TMI Blog2020 (1) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... e documents filed by the parties. 3. The Financial Creditor has claimed the total amount of Rs. 1,77,28,94,303.93p as outstanding against the Corporate Debtor as on 14.03.2019. Clause 2 of Part-IV of the Application discloses the details of the loan amounts due to the Financial Creditor by the Corporate Debtor in various loan accounts. 4. The case of the Financial Creditor is that the Corporate Debtor is engaged in the business of import of coals on stock and sale basis or high seas basis, ocean freight forwarding, appointment of stevedoring agents, cargo dispatching at wharf, import documentation, inland transportation as well as energy optimization consultancy. The Corporate Debtor approached the Financial Creditor for availing various credit facilities. Accordingly, the Corporate Debtor was initially sanctioned an overall Credit Facilities to the tune of Rs. 100 Crores with a sublimit of Rs. 24 Crores as Cash Credit and Rs. 10 Crores as Letter of Guarantee in the year 2005 against the Hypothecation of Stocks and Book Debts of the Corporate Debtor on Pari Passu basis with other financial lenders. 5. At the request of the Corporate Debtor, the credit facilities were periodicall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Corporate Debtor shall comply with all the terms and conditions, pre-requisites as prescribed and that may be prescribed by the Financial Creditor from time to time in the matter of issuing Letters of Credit with DA usance drawn thereunder. The Corporate Debtor also agreed and undertaken that it shall be liable to pay all amounts due to sellers/purchasers as and when they fell due and at no time, the Corporate Debtor shall default in making payments of full amounts due from time to time and in the event of failure on its part of its own accord and/or on demand by the Financial Creditor, the Financial Creditor shall on account of the obligations entered into on behalf of the Corporate Debtor in terms of the said agreement without further reference or without any demur on any count either as notified by the Corporate Debtor or anybody on its behalf or anybody claiming under it, shall pay to the debt of Corporate Debtor's account amounts due as determined with interest, if any on account of non-payment by the Corporate Debtor in time or on due dates. 10. In addition, the Corporate Debtor executed a Consent Letter in favour of the Financial Creditor consenting for disclosure by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Banks and Financial Institutions Act, 1993, (RDDB& FI Act) against the Corporate Debtor and others, for recovery of amounts before Debts Recovery Tribunal-I, Chennai. Besides that, the Financial Creditor also initiated proceedings under SARFAESI Act, 2002 and pursuing the same for recovery. 14. In the meantime, the DRT-I, Chennai passed Final Order in OA No. 88/2017 on 30.10.2018 granting the Financial Creditor a Recovery Certificate to recover the amounts from the Defendants therein. Copy of OA has been placed at pages 12 to 25 of the typed set filed with the Application. 15. A perusal of records shows that the Corporate Debtor did not choose to file any Counter Affidavit in the instant Application. Instead, it has filed a Memo /Submissions on 04.10.2019, wherein it is stated that the Corporate Debtor was enjoying banking facilities with five Banks which includes IDBI Bank, Indian Overseas Bank, Corporation Bank, Jammu & Kashmir Bank and State Bank of India under multiple banking arrangements for about Rs. 455 Crores and the entire Working Capital (WC) Limits are currently overdue with the Bank. It is stated that except for IDBI Bank, all other banks are part of the consorti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to hold 51% stake in the project company. As per the Scheme, the State Bank of India acting on behalf of the lenders was required to identify an investor to acquire their 51% stake and take over the management. While the lenders lead by State Bank of India were in the process of identifying the potential investor to take over the management of the Corporate Debtor, the RBI through its circular dated 12.02.2018, have discontinued all the existing restructuring schemes including SDR Schemes. 20. It is stated that the Banks for re-running the process in which a couple of restructuring bids have been received and the Promoter of Coastal Energen has submitted a restructuring offer with Price Waterhouse Coopers acting as financial advisers and in the meantime, the Promoter has also submitted a One Time Settlement offer for a sum of Rs. 3000,00,00,000/-(Rupees Three Thousand Crores Only) and the Banks are in process of evaluating the same. While Coastal Energen was undergoing the SDR Process, the Financial Creditor viz., Indian Overseas Bank had filed the present Application under Section 7 of the I&B Code, 2016 against the Respondent herein, who is a coal trading arm of Coastal Ener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to Coastal Energen against full scale operations, the Coastal Energen would be able to clear the outstanding to the Corporate Debtor herein over a four year period from the date of resolution plan is implemented. It is also stated that the Corporate Debtor also proposes to settle the bank dues through recoveries from Government of India's Mini Ratna MMTC and others by way of settlement by recovery from Debtors Rs. 68 Crores. Therefore, the Corporate Debtor has urged to consider the proposal for OTS and to support the resolution process initiated by the lenders of Coastal Energen and not to initiate any legal proceedings that would jeopardise the resolution and revival process and potential of OTS, and hence has prayed to keep the present Application filed in IBA/624/2019 in abeyance until the completion of the resolution process and has been initiated by the lenders of Coastal Energen Private Limited. 25. We have carefully considered the rival submissions as well as the pleadings and the documents as filed by the Counsel for parties before this Tribunal. During the course of arguments, the Counsel for the Financial Creditor has brought to the notice of this Authority the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally in terms of Sections 15,17,18 of the I&B Code, 2016 and file his report within 20 days before this Bench. The powers of the Board of Directors of the Corporate Debtor shall stand superseded as a consequence of the initiation of the CIR Process in relation to the Corporate Debtor in terms of the provisions of I&B Code, 2016. 29. As a consequence of the Application being admitted in terms of Section 7 of the I&B Code, 2016, moratorium as envisaged under provisions of Section 14(1) and as extracted hereunder shall follow in relation to the Corporate Debtor; (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 security interest created by the Corporate Debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Intere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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