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TMI Blog2019 (11) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... arded to it by National Highways Authority of India for four laning of Trichy-Dindigul Road in Tamilnadu. 3. For execution of the said project, the Corporate Debtor approached the Petitioner and other Lenders for Rupee Loan. The Corporate Debtor, on 28.03.2018, executed a common Rupee Loan Agreement with the Petitioner along with Canara Bank, Corporation Bank, India Infrastructure Finance Company Ltd. (IIFCL), Oriental Bank of Commerce and UCO Bank with Canara Bank acting as the lender's agent and security trustee. 4. The following is break-up of the Rupee Loan provided by various financial creditors including the Petitioner for an aggregate sum of Rs. 322.40 Crores: Bank of India (Petitioner)- 25 Crores Canara bank- 85.40 Crores Corporation Bank- 65 Crores IIFCL- 75 Crores Oriental bank of Commerce- 32 Crores UCO Bank- 40 Crores 5. The Petitioner enclosed the following documents in respect of the above said facilities granted by the Rupee Lenders: a. Common Loan Agreement dated 28.03.2008 b. Security Trustee Agreement dated 28.03.2008 c. Deed of Hypothecation dated 28.03.2008 d. Consent and Agreement dated 28.03.2008 e. Escrow Agreement dated 16.04.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng action against the Corporate Debtor independently: i. Clauses 7.2 and 7.3 of the Common Loan Agreement provides for the actions that may be taken by the "Rupee Lenders" (as distinct from a Rupee Lender acting singly) upon the occurrence of an Event of Default. ii. Clauses 2.4 of the Inter-Creditor Agreement provides that all the Rupee Lenders will consult with one another with respect to any action taken or proposed to be taken which could affect inter alia the Project, the Corporate Debtor or the Security. iii. Clauses 4.3 (a) of the Inter-Creditor Agreement provides that in the event of occurrence of an Event of Default, the Rupee Lenders shall have the right to proceed to enforce their claims against the Corporate Debtor but not before following the procedure prescribed in Clause 4.3(b) of the Inter-Creditor Agreement. iv. Clause 4.3(b) of the Inter-Creditor Agreement provides for the procedure to be followed by a Rupee Lender intending to take any Enforcement Action against the Corporate Debtor. The procedure includes the issuance of a notice to all the other Rupee Lenders by the Rupee Lenders proposing to initiate the Enforcement Action, convening a meeting of all t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of COC, this tribunal can seek the views of the other consortium members before admission of this petition more particularly when the other consortium members have consented to evaluate and implement the resolution plan. l) Even the object of the Code is to bring about the resolution of stressed assets in a time bound manner for maximization of value of such assets and to promote entrepreneurship, availability of credit and to balance the interest of all stakeholders. The action of the Petitioner in filing this petition is itself contrary to the Code when the other consortium members are ready to resolve this issue by a resolution known to RBI regulations. m) Relying on the newspaper report dated 16.09.2019 wherein the chairman of State Bank of India, Mr. Rajnish Kumar, who has cautioned the Lenders against undertaking selfish steps without coordinating with other creditors involving a common borrower, the Counsel for the Corporate Debtor submits that the Petitioner herein is doing the exact thing that is complained of by the chairman of the largest bank in India. n) Further relying on the newspaper report dated 12.09.2019, wherein the Hon'ble Minister of State for Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... default in Part V. Under Rule 4(3), the applicant is to dispatch a copy of the application filed with the adjudicating authority by registered post or speed post to the registered office of the corporate debtor. The speed, within which the adjudicating authority is to ascertain the existence of a default from the records of the information utility or on the basis of evidence furnished by the financial creditor, is important. This it must do within 14 days of the receipt of the application. It is at the stage of Section 7(5), where the adjudicating authority is to be satisfied that a default has occurred, that the corporate debtor is entitled to point out that a default has not occurred in the sense that the "debt", which may also include a disputed claim, is not due. A debt may not be due if it is not payable in law or in fact. The moment the adjudicating authority is satisfied that a default has occurred, the application must be admitted unless it is incomplete, in which case it may give notice to the applicant to rectify the defect within 7 days of receipt of a notice from the adjudicating authority. Under sub-section (7), the adjudicating authority shall then communicate the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act); (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor. (II) That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. (III) That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. (IV) That the order of moratorium shall have effect from 25.11.2019 till the completion of the corporate insolvency resolution process or until this Bench approves the resolution plan under Sub-section (1) of Section 31 or passes an order for liquidation of Corporate Debtor under Section 33, as the case may be. (V) That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under Section 13 of the Code. (VI) That this Bench hereby appoints Mr. S. Rajendran, having office at No. 188/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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