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TMI Blog2019 (9) TMI 1437X X X X Extracts X X X X X X X X Extracts X X X X ..... 55, having its Central Office at Mumbai, whereas the Respondent/Corporate Debtor is a limited company incorporated under the Companies Act, 1956, on 23.05.1983 and having its registered office at Mahabubnagar district, Telangana. The main objects of the Corporate Debtor are to carry on the business of Cotton Silk, Rayon, Flax, Jute, Wollen Merchants, Cotton ginnners and Doublers, Carpet makers, jute manufacturers, Spinning, Weaving, dyeing etc., 4. It is stated that on approach by the Corporate Debtor, the Financial Creditor and other consortium lenders have sanctioned various fund based and non-fund based limits. The sanctioned limits were drawn by the Corporate Debtor on various dates which were renewed from time to time by the Petitioner/Financial Creditor under consortium banking arrangement. Subsequently, due to various reasons, the Corporate Debtor had failed to repay the same and renewed limits as per the terms and conditions and subsequently, in accordance to RBI guidelines, the CDR empowered group approved a restructuring package in terms of which, the then existing financial limits were restructured and additional financial assistance was extended as set out in the appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Creditor had issued Demand Notice dated 15.03.2017, u/s. 13(2) of the SARFAESI Act for recovery of a sum of Rs. 186,03,70,537.73/- as on 28.02.2017 and the Corporate Debtor having received the above demand notice dated 15.03.2017, instead of clearing the entire dues within a period of 60 days, issued reply/objections dated 12.05.2017. Further, the Financial Creditor has issued a reply dated 24.05.2017 to the Corporate Debtor for the aforesaid objections. 9. It is stated that as on 24.12.2018, the amount in default was Rs. 340,22,70,058.86/- (Rupees Three Hundred Forty Crores Twenty Two Lakhs Seventy Thousand and Fifty Eight Rupees and Eighty Six Paise Only) plus applicable penal interest and penalties from there on till the repayment of the outstanding amounts. The working for default amount is at page no. 1033 in vol. IV of the petition. 10. The Petitioner/Financial Creditor in support of its claim has placed several documents evidencing the default as stated below: a) Copy of the Restructuring proposal approved under CDR Mechanism dated 28.02.2013; b) MRA Agreement dated 27.03.2013; c) TRA Agreement dated 27.03.2013; d) Security Trustee Agreement dated 27.03. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Company, however it needs to be mentioned that it is the petitioner company and every member of the consortium banks should themselves have to know the clauses of the MRA. As per the Corporate Debtor, it is due to sheer negligence of the consortium of banks that the Corporate Debtor has incurred losses. 16. It is further stated by the Respondent that the Petitioner/Financial Creditor made false and baseless averments that it has defaulted in the repayment of the loan amount and failed to meet the terms and conditions of the MRA. 17. Petitioner filed reply to the counter dated 05.08.2019 stating that objections made by Corporate Debtor with regard to Limitation, Lis-pendens etc., are neither tenable nor applicable in this matter. The petitioner submitted that the account of the Respondent was declared as NPA on 28.02.2017 (effective from 30.03.2013) upon failure of approved restructuring proposal of the Corporate Debtor as per RBI norms and since then it is a continuing default and continues to remains so till the recovery proceedings were initiated by the Financial Creditor under the provisions of law and even as on today. An extract of the Annual Report for the financial year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Financial Creditor filed reply to the counter filed by the Corporate Debtor and also some documents and copy of the same was furnished to the other side. Counsel for the Respondent prayed time for verification of documents and for making submissions. Considering the request, time was enlarged and both sides were directed to make submission on next date of hearing and the matter was finally adjourned to 13.08.2019. 26. During the hearing held on 13.08.2019, counsel representing both sides were present and were heard extensively. The counsel for Financial Creditor also filed written submissions. However, the Respondent's counsel sought time till 14.08.2019 for filing written submissions. The matter was reserved for orders. 27. Heard both sides and perused the record including the written submissions filed by the Financial Creditor. No written submissions filed by the Corporate Debtor. 28. It is the case of the Petitioner that it has provided various fund based i.e., working capital and term loan and Non-fund based facilities to the Corporate Debtor for which the Corporate Debtor was liable to repay and has defaulted in the same. The Respondent nowhere in its counter denied t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , this Adjudicating Authority deems it appropriate to rely on the Judgement of NCLT, Mumbai Bench, in the matter of Bell Finvest (India) Limited vs. Luthra Water Systems Private Limited; which has been upheld by Hon'ble NCLAT and Hon'ble Supreme Court, wherein it is observed as under; "Further that, as far as the question of churned amount is concerned we are of the opinion that, this Tribunal is not to decide the quantum of amount in default but, this Tribunal is merely to decide whether there is Default under S. 3(12) of the Code or not? And as already said there is Default under S. 3(12) of the Code on the side of the Corporate Debtor. We are of the opinion that, the quantum of claimed amount is to be decided by the Resolution Professional, so appointed". Even in the present case the quantum of amount claimed by the Petitioner is to be decided by the Resolution Professional and not by this Adjudicating Authority. 34. In the present case, this Adjudicating Authority is satisfied with the submissions put forth by the Petitioner/Financial Creditor. Further, the Financial Creditor has fulfilled all the requirements as contemplated under IB Code in the present Company Pet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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