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TMI Blog2019 (7) TMI 1838X X X X Extracts X X X X X X X X Extracts X X X X ..... ial institution and has provided financial assistance to the Corporate Debtor. The Corporate Debtor is a company registered under the Companies Act, 1956 and is engaged in the manufacturing and export of Laces, Ribbons, Trimmings, Tassels, Cords, Military Braids & Pilot Gallons, Zari Laces, Imitation Laces, Printed Ribbon, Embroidered Lace. 3. The Petitioner submits that under the request made by the Respondent; the Petitioner vide its Letter of Intent dated 04.02.2014, granted financial assistance of term loan of Rs.6,30,00,000/- (Rupees Six Crores Thirty Lakhs Only) to the Corporate Debtor under the Secured Business Loan Scheme. The Corporate Debtor passed the board resolution at the meeting dated 03.03.2014 to avail the financial assistance from the Financial Creditor and accordingly, the Corporate Debtor entered into a Loan Agreement with the Petitioner on 05.03.2014. 4. The Corporate Debtor agreed to repay the Petitioner the said financial facility together with all interest, further interest and other charges on the outstanding amounts as per the Letter of Intent dated 04.02.2014. 5. That in pursuance of the financial assistance granted by the Petitioner, the Petitioner an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Petition. 10. The Corporate Debtor in its Board Resolution dated 04.07.2015 accepted and acknowledged the restructured Term Loan. The acceptance of the Restructured term loan was submitted upon a Stamp-Paper on 06.07.2015 to the Petitioner. Copy of the Communication of Acceptance on Stamp Paper dated 06.07.2015 is annexed to the Petition. 11. The Petitioner submits that the Corporate Debtor did not honour the repayment schedule and due to its default in making the necessary payments, the Corporate Debtor's account has been classified as a Non-Performing Asset on 08.11.2015 as per the guidelines issued by the Reserve Bank of India. 12. The Petitioner issued a notice dated 05.02.2016 under section 13(2) of the Securitisation and Reconstruction of the Financial Assets and Enforcement of Security Interest Act, 2002 calling upon the Respondent to pay the entire outstanding dues within 60 days from the date of the notice. Copy of the Notice dated 05.02.2016 is annexed to the Petition. 13. The Corporate Debtor vide letter dated 17.02.2016 filed Reply to the Notice dated 05.02.2016. The Petitioner issued a Rejoinder dated 26.02.2016 and rejected the objections of the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot file this Petition under section 7 of the Insolvency and Bankruptcy Code, 2016 as the same would amount to parallel proceedings and the same is barred by the law. 19. It is also the contention of the Corporate Debtor that the Special Civil Suit No.439/2017 is preferred by the Corporate Debtor against the Financial Creditor claiming damage of Rs.25 crores before the Ld. Principal Senior Civil Judge, Surat before the filing of the present petition. The Corporate Debtor contends that since there is a pre-existing dispute between the parties, the Petition deserves to be dismissed. 20. It is further contended that there cannot be multiple proceedings in various forums for recovery of the amounts arising out of the same transaction. 21. We have heard the parties and perused the records. 22. The Petition is filed by Ms Sudha Padmanabhan, Deputy General Manager of the Petitioner-Bank, authorised vide its Letter of Authorisation dated 01.01.2018. The Petition is filed on 05.01.2018. The letter of Authorisation dated 01.01.2018 is annexed to the petition. 23. The Petitioner has issued the letter of intent dated 04.02.2014, sanctioning a loan of Rs.6,30,00,000/- (Rupees Six Crores Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lready initiated proceedings under the SARFAESI Act, 2002 and a special civil suit is an untenable argument. In this regard, it is imperative to mention here that section 238 of the Insolvency and Bankruptcy Code, 2016 provides that the provisions of the Code shall have an overriding effect and therefore the proceedings under the SARFAESI Act, 2002 or any other proceedings are no bar to initiate proceedings under section 7 of the I&B Code. Section 238 of the Code is reproduced hereinbelow: "The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith, contained in any other law for the time being in force or any instrument having effect by virtue of any such law." 30. The Petitioner has proposed the name of Mr George Samuel, a registered insolvency resolution professional having Registration Number [IBBI/IPA-003/IP-N00043/2017-18/10319] as Interim Resolution Professional, to carry out the functions as mentioned under I&B Code, and given his declaration; no disciplinary proceedings are pending against him. 31. The Application under sub-section (2) of Section 7 of I&B Code, 2016 is complete. The existing financial debt of more than Rupees One Lak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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